Technology stocks fell sharply in Asia after the emergence of Chinese artificial-intelligence startup DeepSeek triggered a selloff in AI-related stocks overnight and cast uncertainty over the rising demand for data centers.

Technology stocks led gains in Asia-Pacific markets on Wednesday, tracking advances on Wall Street as investor angst ebbed over the emergence of a low-cost Chinese AI model that some see rivalling U.S.

The unveiling of a large language model by a Chinese firm that can compete with U.S. giants but at potentially a fraction of the cost was like a "nuclear bomb in the AI technology world", a market expert said on Tuesday.