DeepSeek, a Chinese AI startup that’s just over a year old, has stirred awe and consternation in Silicon Valley after demonstrating breakthrough artificial-intelligence models that offer comparable performance to the world’s best chatbots at seemingly a fraction of the cost.

Nasdaq futures slumped and technology shares slid in Japan as the surging popularity of a Chinese discount artificial intelligence model knocked investors' faith in the profitability of AI and the sector's voracious demand for high-tech chips.

A Chinese start-up’s new artificial intelligence program took the top spot in Apple’s app store, threatening U.S. dominance in the field and huge investments from companies in the new technology. Stock futures were falling sharply Monday.