Shares of Japanese chip-related firms were feeling the heat on Monday. Today’s slump comes as Chinese AI startup DeepSeek gained traction with its updated AI model, raising fears about potential challenges to US technological dominance.

Shares of Japanese semiconductor-related companies extended their losses on Tuesday after Monday’s selloff, driven by the release of the Chinese AI model DeepSeek. The selloff in US tech stocks added to the downward pressure,

In international markets, chipmaking and electrification companies saw pressure on the fears over the DeepSeek AI service. SoftBank -- the company that said it would fund up to $500 billion in AI infrastructure as well as the main shareholder of microchip designer ARM -- saw its stock dive 8%.

Group, led by Japanese billionaire Masayoshi Son, plans to approach private equity firms Apollo Global Management (NYSE:APO) and Brookfield for funding assistance with the Stargate AI project, Nikkei reported.

DeepSeek-R1-Zero, a model trained via large-scale reinforcement learning (RL) without supervised fine-tuning (SFT) as a preliminary step, demonstrates remarkable reasoning capabilities. Through RL, DeepSeek-R1-Zero naturally emerges with numerous powerful and intriguing reasoning behaviors.

The president said it will be the largest AI infrastructure ever built and that it will help counter technology threats from China and other countries.

Tech news website The Information reported previously that SoftBank was planning to invest a total $40 billion (roughly Rs. 3,46,320 crore) into Stargate and OpenAI and had begun talks to borrow up to $18.5 billion (roughly Rs. 1,60,170 crore) in financing, backed by its publicly-listed assets.

SoftBank is in talks to invest up to $25 billion in OpenAI as part of a broader partnership that could see the Japanese conglomerate spend more than $40 OpenAI is in talks to raise up to $25 billion from SoftBank amid DeepSeek shock.

Japan’s SoftBank is in talks to invest $15-25 billion in OpenAI in a deal that would make it the ChatGPT-maker’s biggest financial backer, the Financial Times reported on Thursday. The report comes after Chinese startup DeepSeek sparked panic this week with a powerful new chatbot developed at a fraction of the cost of its US competitors,

SoftBank is reportedly considering a historic $25 billion investment in OpenAI, which could surpass Microsoft's stake and position SoftBank as the ChatGPT maker's largest investor.

The Japanese corporation SoftBank Group has shown interest in investing as much as $25 billion in OpenAI, which would make it the organization’s biggest financial sponsor. According to a Bloomberg report,