The emergence of a small Chinese artificial intelligence (AI) company called DeepSeek initially put a giant hole in the U.S. stock market. Tech stocks -- particularly those connected to the AI trend -- got crushed,

Nvidia stock was dropping Monday. The threat of sweeping tariffs on U.S. imports has raised the prospect of similar levies being imposed on semiconductors.Nvidia shares were down 4.7% at $114.40. The stock fell 3.

DeepSeek stunned the tech world with the release of its R1 "reasoning" model, matching or exceeding OpenAI's reasoning model for a fraction of the cost.

DeepSeek has launched an AI model that was reportedly developed with significantly less computational power than traditional methods. Shares of Nvidia are under pressure amid concerns that DeepSeek's methods may undermine demand for its high-performance GPUs.

One of the biggest stories from last week underscores just how critical AI has become—not just for Silicon Valley, but for America’s national security.