By Suzanne McGee (Reuters) -Prices of exchange-traded funds with outsize exposure to Nvidia plunged on Monday in reaction to news that a Chinese startup has launched a powerful new artificial intelligence model.

Chinese research lab DeepSeek just upended the artificial intelligence (AI) industry with its new, hyper-efficient models. DeepSeek's innovation could shrink demand for AI data center chips, which might hurt suppliers like Nvidia.

Tech stocks tumbled on Monday as advances by Chinese artificial intelligence start-up DeepSeek cast doubt on whether the US could sustain its leadership in AI by spending billions of dollars on chips.

Global technology shares recovered some poise on Tuesday, but remained vulnerable after a rout sparked by the emergence of a low-cost Chinese artificial intelligence model made investors question the sky-high valuation and dominance of AI bellwethers.