Shares of Advanced Micro Devices (NASDAQ: AMD) slipped Monday, losing 6.9% as of 4 p.m. ET, after being down as much as 8.2% earlier in the day. The surge comes as the S 500 and Nasdaq Composite lost 1.7% and 3.3%, respectively.

AMD's stock suffered from the same news dragging down much of Silicon Valley today: the release of a new artificial intelligence (AI) model out of China that rivals the best U.S. models.

DeepSeek, from a company in China, is relatively new. In a short amount of time, with inferior hardware and for a fraction of the price, DeepSeek was able to create an AI model on par with offerings from both OpenAI and Amazon.

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Source Fool.com