Good afternoon! This is Daniel de Visé bringing you your Daily Money, DeepSeek edition.

On Monday, both the tech-focused Nasdaq and the wider S&P 500 indices fell, according to Medora Lee, as a competitive AI model from a Chinese startup raised questions about the U.S. strategy in AI.

The biggest losses came from leading semiconductor companies like Nvidia and Broadcom, whose chips are essential for AI computing. Here are the details.

What Exactly is DeepSeek?

This month, Chinese startup DeepSeek introduced an affordable AI model that competes with OpenAI while using significantly less processing power.

Founded in 2023 and based in Hangzhou, DeepSeek quickly climbed to the top of Apple’s App Store’s free app chart after the launch of its new open-source AI model, which it claims rivals OpenAI’s capabilities. Their website faced outages due to the overwhelming interest.

Here’s more about this emerging AI player.

Addressing the Homeowners Insurance Crisis

The catastrophic fires in Los Angeles serve as a harsh reminder of the ongoing homeowners insurance crisis in America, as noted by Andrea Riquier, fueled by climate change that increases the risks to properties, forcing insurers to adjust their pricing.

To put it in perspective: between 2000 and around 2013, insurance costs represented about 7% to 8% of an average mortgage payment. But beginning in 2013, premiums began to rise sharply. By 2022, insurance expenses made up more than 20% of the average mortgage payment, based on data from analytics firm First Street.

Now, state officials are actively seeking solutions.

About The Daily Money

Every weekday, The Daily Money provides the latest consumer and financial news from YSL News, simplifying complex developments, summarizing key points, and detailing how various factors, from Federal Reserve rate adjustments to bankruptcies, affect you.

Daniel de Visé focuses on personal finance.