Australian stocks linked to artificial intelligence (AI) fell sharply on Tuesday amid growing concerns that a new, low-cost AI model from Chinese startup DeepSeek could challenge the dominance of established market leaders.

Shares of AI-focused companies like Appen, a software firm, and Brainchip, an AI chipmaker, saw significant drops. Appen fell by 3.3%, while Brainchip dropped by 10.3%. The technology sub-index was also down 1%, Reuters reported.

DeepSeek, founded in 2023 by the Chinese hedge fund High Flyer, launched its new AI model, R1, which claimed to use less data at a fraction of........

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