Silicon Valley and Washington leaders said the app shows China can challenge the U.S. The Nasdaq lost 3 percent and chipmaker Nvidia shed $589 billion in market capitalization.

Two members of U.S. Congress are calling on President Donald Trump's administration to consider restricting the export of artificial intelligence chips made by Nvidia , alleging Chinese AI firm DeepSeek has relied on them.

President Donald Trump said Monday that the sudden rise of Chinese AI app DeepSeek “should be a wake-up call” for America’s tech companies.

US President Donald Trump has called Chinese AI start-up DeepSeek's strong showing a "wake-up call" and "positive" for America's tech sector, and also warned that he would slap tariffs on foreign-made semiconductor chips,

These days, nothing is certain about the tech market or the world at large. Even Nvidia's seemingly bulletproof stock took a hammering on Monday, enduring

Nvidia said in a statement it is "ready to work with the administration as it pursues its own approach to AI."

Export controls need to be tightened after revelations the Chinese company used Nvidia technology, the leaders of a congressional committee said.