Oklo Inc. shares plummeted 12.72% in pre-market trading on Monday, as energy and nuclear stocks were heavily sold off following concerns over China's progress in artificial intelligence (AI) and its potential impact on the semiconductor industry.

The sell-off was triggered by reports that Chinese AI startup DeepSeek has developed a powerful AI model at a relatively low cost by using less-advanced chips. This raised doubts about the necessity for high-end and expensive chips from companies like Nvidia, which have been at the forefront of the AI boom.

With concerns mounting that DeepSeek's breakthrough could disrupt the AI supply chain, investors dumped stocks across the energy and nuclear sectors, which have been beneficiaries of the AI chip demand. Oklo Inc., a company focused on advanced nuclear power, was among the hardest hit, as fears grew that demand for its technology could be impacted.