Trump Says China’s DeepSeek a ‘Wake-Up Call’ for US Tech Companies

AI companies experienced steep stock price slides after DeepSeek’s advancements were made public.

President Donald Trump warned a crowd at the Republican lawmakers’ gathering of the Congressional Institute at the Trump Doral National resort in Miami on Jan. 27 that the Chinese artificial intelligence company DeepSeek’s actions could prove disruptive to the industry.

“Hopefully, the release of [DeepSeek] AI from a Chinese company should be a wake-up call for our industries. They need to be laser-focused on competing,” Trump said. “Because we have the greatest scientists in the world, even Chinese leadership told me that.” 

He suggested the news that an AI company outside the United States had managed to create a breakthrough that allowed for faster and cheaper training and processing was not expected. 

“This is very unusual when you hear a DeepSeek, when you hear somebody come up with something,” Trump said. “We always have the ideas, we’re always first.” 

Founded in 2023 by Liang Wengfeng—co-founder of the Chinese hedge fund High-Flyer—DeepSeek is a free, open-source language learning model that is comparable to some of the best-known closed-source models on the market. 

Noting that reports of training costs—which the company claims totaled about $6 million, a mere fraction of the $100 million plus spent on some similar models developed in the United States in recent years—and other variables are unconfirmed, the president expressed cautious optimism that U.S. enterprises could harness the technology. 

“If it’s fact, and if it’s true, and nobody really knows if it is, but I view that as a positive because you’ll be doing that too, and you won’t be spending as much, and you’ll get the same result, hopefully,” Trump said. “We’re going to unleash our tech companies, and we’re going to dominate the future like never before.” 

Some tech experts are comparing the news to other historical, technological breakthroughs that revolutionized industries.

“DeepSeek R1 is AI’s Sputnik moment,” Marc Andreesen, billionaire software engineer and co-founder of Netscape, posted Jan. 26 on social media platform X.

In the days after the firm announced its advancements, financial market turmoil erupted in the tech sector.  

Nvidia, seen as the United States and global leader in the AI field, saw its stock price plummet nearly 17 percent on Jan. 27, erasing $589 billion in market capital—representing a record loss in one day for one company. 
Other stocks also felt an impact—including chip manufacturer Broadcom, which fell more than 17 percent, and AI infrastructure firm Vertiv, down almost 29 percent. 

DeepSeek reportedly experienced overwhelming levels of registrations and a series of cyberattacks on Jan. 27 that caused the company to limit activity.

Given the financial and economic implications of disruptive technology, some lawmakers are calling for more attention to foreign trade standards with both allies and adversarial nations.

Speaker Mike Johnson (R-La.) said during a briefing at the Republican retreat that addressing issues with China in relation to trade and national security is a matter of prime importance. 

“China is a terrible trading partner,” he said. “They abuse the system. They steal our intellectual property.” 

Highlighting the efforts underway with DeepSeek technology and other AI infrastructure under construction, he suggested the United States is preparing to counter perceived threats. 

“They’re now trying to get a leg up on us on AI, as you’ve seen in the last day or so,” Johnson said. “It’s a serious threat to us, and to our economy, and to our security in every way, so the president takes that seriously, and I think he will deal with that in an appropriate manner.”

There are also concerns over censorship.

According to analysis by The Epoch Times, DeepSeek skews heavily in favor of the Chinese Communist Party (CCP).

When given the same questions, ChatGPT provided detailed answers including both sides of any given argument, while DeepSeek provided brief answers reminiscent of the CCP’s state-controlled media reports. It outright refused to answer questions about human rights.

Since the term AI originated at a Dartmouth conference in 1959, the United States has dominated the field in every aspect of technological development, according to experts.
Trump has committed to continuing to lead the world in AI, with $500 billion in private industry investment for infrastructure announced on Jan. 21.

Original News Source Link – Epoch Times

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