The emergence of DeepSeek is casting doubt on the power needs of AI—and on the stocks of independent power producers.

Shares of U.S. power, utility and natural gas companies sold off on Monday in some of the biggest recorded one-day drops, as new AI technology from Chinese start-up DeepSeek cast doubt on a projected surge in U.

Early Monday trading saw sharp declines across the US stock market, triggered by the unexpected rise of a Chinese AI app, DeepSeek. Over the weekend, DeepSeek soared to the top of Apple’s app chart, sending shockwaves through industries tied to artificial intelligence.

Developers of the first Stargate data center in Abilene, Texas, have submitted an application to site a natural gas plant with the data center, according to public filings.

Oil and gas producer Chevron said on Tuesday it plans to build natural gas-based power plants next to data centers in the U.S., as energy demand to support the growth of artificial intelligence is expected to boom.

The joint venture aims to deliver 4 gigawatts of electricity for data centers starting by the end of 2027.