Microsoft's stock held its own while investors panicked about DeepSeek's potential impact on other corners of the technology sector. That suggests Wall Street isn't too worried that DeepSeek's advancements in cost efficiency pose a major threat to Microsoft.

Following the market plunge triggered by the release of the DeepSeek chatbot, Nvidia has recovered a large portion of its losses.

Despite the controversy surrounding the Chinese open-source model, it has received the blessing of US companies that say their versions of it are safer and feature less censorship.