China’s answer to OpenAI, a budget artificial intelligence model called DeepSeek, has forced Wall Street to reassess Silicon Valley’s lead on the rest of the world in generative AI after DeepSeek held its own against competing technologies in the global cyber arms race.

News of DeepSeek’s capabilities sent Nasdaq futures down 2.2 per cent and S&P 500 futures 1.2 per cent ahead of the open of US trading on Monday as the world’s equity investors took stock of the implications for rich valuations bestowed upon AI juggernauts like chipmaker Nvidia and Microsoft.