NANO Nuclear Energy Inc. (NNE), a pioneering company in next-generation nuclear technologies, witnessed a sharp pre-market decline of 12.38% on Monday. The stock's plunge appears to be driven by investor concerns over potential disruption to demand for advanced computing hardware and AI chips, which are crucial for NNE's operations.

The catalyst for this sell-off was the release of a powerful new AI model by China's DeepSeek lab, which claimed to have built the system for just $6 million using less expensive chips. If true, this development could undermine the need for costly, high-end chips and systems required for cutting-edge AI applications, potentially reducing future capital expenditures for NNE and other players in the nuclear and energy tech sphere.

While the long-term implications of DeepSeek's offering remain uncertain and will depend on its performance and scalability, the news has sparked concerns about America's technological dominance in AI and raised questions about the validity of sky-high valuations for companies like Nvidia Corp., a leader in AI chips.