Good afternoon! It’s Daniel de Visé with your Daily Money, DeepSeek edition.

The tech-heavy Nasdaq and broad S&P 500 indexes slumped on Monday, Medora Lee reports, after a competitive artificial intelligence model from a Chinese startup sowed doubts about the U.S. approach to AI.

Losses were led by semiconductor darlings like Nvidia and Broadcom, whose chips fuel AI computing. Here are the numbers.

So what is DeepSeek, anyway?

This month, Chinese startup DeepSeek released a cost-efficient AI model to compete with OpenAI using a fraction of the computing power.

DeepSeek, a Hangzhou-based startup founded in 2023, shot to the top of Apple’s App Store free app chart after releasing a new open-source AI model it says rivals OpenAI's work. Its website was hit by outages amid a spike in interest. 

Here's more on the AI upstart.

Solutions to the homeowners insurance crisis

The devastating Los Angeles fires have been a grim reminder of America’s homeowners insurance crisis, Andrea Riquier reports, as climate change intensifies potential property damage and insurers scramble to price rising risk.

Consider: from 2000 to about 2013, insurance costs made up 7% to 8% of the typical mortgage payment. But starting about 2013, premiums surged. As of 2022, insurance costs made up over 20% of the typical mortgage payment, according to data from analytics provider First Street.

Now, state leaders are looking for solutions.

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About The Daily Money

Each weekday, The Daily Money delivers the best consumer and financial news from USA TODAY, breaking down complex events, providing the TLDR version, and explaining how everything from Fed rate changes to bankruptcies impacts you.

Daniel de Visé covers personal finance for USA Today.