Rebounding tech stocks drove U.S. indexes higher a day after they tumbled on doubts about the artificial intelligence frenzy.

SoftBank is in talks to lead a funding round for artificial intelligence robotics start-up Skild AI that would more than double its valuation to close to $4bn, as Masayoshi Son hunts for deals to match his vaunted ambitions for the sector.

Nvidia dipped 0.8% after initially gaining, following a nearly 17% plunge on Monday—its worst drop since the 2020 COVID crash.

Nvidia (NASDAQ:NVDA) and other chip stocks are gaining in premarket trading Tuesday, poised to recover some of the losses from Monday’s sharp sell-off.

Chinese startup DeepSeek's recently launched free AI assistant had overtaken US rival ChatGPT in downloads from Apple's app store

US chipmaker Nvidia dived 17 per cent, wiping off nearly USD 593 billion in the biggest market capitalisation loss in history, following a wave of selling as China's DeepSeek developed a free AI assistant using lower-cost chips.

Shock to financial markets came from Chinese firm whose AI app it says was made at a fraction of US AI models.

The past few years have been undeniably profitable for Nvidia ( NVDA 4.43%) investors. The stock price has surged more than sevenfold over the past two years, and today, it topped the charts as the world's most valuable company in terms of market cap. The stock was up as much as 4.7% Wednesday morning. At 12:32 p.m. ET, the stock was still up 4.1%.

A major tech stock sell-off ensued Monday as the debut of DeepSeek rattled investors. Nvidia, Alphabet, and Microsoft were among the biggest losers.

Don’t be surprised if we reach quantum supremacy by the end of the year after China’s DeepSeek AI model Sputnik

Rebounding tech stocks drove U.S. indexes higher Tuesday, a day after they tumbled on doubts about whether the artificial-intelligence frenzy really needs all the dollars being poured into it. The S&P 500 climbed 0.