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.

DeepSeek released an open-source artificial intelligence model in December, saying it took only two months and less than $6 million to create it.

A Chinese AI company called DeepSeek is sending a shock wave through Wall Street. Margaret Brennan explains. President Trump and Elon Musk, two powerful figures, were initially united for the cameras and the "greater good," but their marriage made in heaven has now officially ended due to their conflicting ideologies and egos.