European tech shares tumble as China's AI push spooks investors
European tech shares came under pressure on Monday, after Chinese tech startup DeepSeek's low-cost artificial intelligence model sparked worries about returns in the AI business and the need for costly chips.
The pan-European STOXX 600 dropped as much as 0.8% earlier in the day, tracking a global market sell-off on concerns about AI investment and tech sector valuations, after DeepSeek rolled out a free assistant that it says uses lower-cost chips and less data.
European tech stocks slid 3.4% and were on track for their biggest daily drop since October, with chip equipment maker ASML dropping 7% to touch a two-month low and ASM International (ASMI.AS), opens new tab slumping more than 12%.
Source: Reuters