Miami: US President Donald Trump warned that the emergence of China's low-cost AI model, DeepSeek, is a "wake up call" for American companies, following a sharp decline in tech stocks.
"Hopefully, the release of DeepSeek AI from a Chinese company should be a wake up call for our industries that we need to be laser-focused on competing to win," Trump stated during a Republican congressional retreat in Miami.
Also Read
Trump acknowledged that while the DeepSeek model's rise could be alarming, it might also have a positive impact on Silicon Valley. He suggested that the competition could encourage American companies to innovate at lower costs.
"I would say that could be a positive," Trump said. "So instead of spending billions and billions, you'll spend less, and you'll come up with hopefully the same solution."
DeepSeek AI shocks tech world
The release of DeepSeek, developed by a startup based in Hangzhou, China, has sent shockwaves through the tech industry. The AI model appears to rival the capabilities of leading US AI companies, but at a fraction of the investment costs.
Trump’s comments came after a dramatic fall in the stock value of US chip-maker Nvidia, which is a major player in powering the AI industry. Nvidia saw nearly $600 billion wiped off its market value as a result of this new competition.
Trump’s vision for US AI investment
Just a week after being inaugurated for his second term, Trump announced plans to invest $500 billion in AI infrastructure for the United States. The project, backed by Japanese conglomerate SoftBank and OpenAI, the creator of ChatGPT, aims to bolster US competitiveness in the global AI race.
As US tech firms face increasing pressure from international competitors, Trump’s remarks signal a growing focus on strengthening domestic innovation and reducing reliance on costly investments.
Agency
Published: 28 Jan 2025, 07:33 am IST
Related Topics
Subscribe to our Newsletter
Disclaimer: Kindly avoid objectionable, derogatory, unlawful and lewd comments, while responding to reports. Such comments are punishable under cyber laws. Please keep away from personal attacks. The opinions expressed here are the personal opinions of readers and not that of Mathrubhumi.