The S&P 500 and the Nasdaq fell sharply on Monday, led by Nvidia and other chipmakers as popularity of a low-cost Chinese artificial intelligence model raised investor worries about the outlooks for current AI leaders in the United States.

The tech-heavy Nasdaq index lost nearly 2.7 percent in early trading, with chipmaker Nvidia down nearly 12 percent.

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

The S&P 500 and the Nasdaq hit over one-week lows on Monday, as the surging popularity of a low-cost Chinese artificial intelligence model knocked shares of chipmaker Nvidia and other companies benefiting from investments into the technology.