AI-exposed power stocks crushed as fears about DeepSeek trigger tech sell-off

AI-exposed power stocks were swept away with tech’s sell-off Monday as advances in AI made by Chinese start-up DeepSeek raised questions over AI spending levels at US companies and their dominance of the market.

Constellation Energy (CEG), the largest nuclear plant operator in the US, tumbled 21%, while electricity generator Vistra Corp (VST) sank by a record 28%. Power equipment maker and servicer GE Vernova (GEV) declined 21%. Even nuclear power startup Oklo (OKLO) tanked 25%.

DeepSeek released a new AI model on Jan. 20 that is viewed as competitive with the chatbots of OpenAI and other US tech companies. It was also cheaper to make, requiring fewer AI chips than the models of bigger players.

Source: FINANCE.YAHOO