Donald Trump warns on China’s Rising AI power, calls DeepSeek a ‘wake-up call’ for US

US President Donald Trump has sounded the alarm on China's rising AI prowess, calling the emergence of DeepSeek, a low-cost AI model, a "wake-up call" for American industries. This comes after a sharp decline in US tech stocks, with Nvidia, the dominant AI semiconductor maker, losing nearly $600 billion in market value.

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Speaking at a Republican congressional retreat in Miami, Trump emphasized the need for the US to refocus on competing the AI sector, which is evolving at a rapid pace. He noted that DeepSeek's success could push Silicon Valley to innovate more efficiently, potentially leading to breakthroughs without the hefty price tag. "Instead of spending billions and billions, you'll spend less, and you'll come up with hopefully the same solution," Trump said.

DeepSeek was developed by a startup in Hangzhou at a fraction of the investment  of leading US AI models and has reportedly matched their performance. This underscores China's growing competitiveness in artificial intelligence, a field historically dominated by the US.

To address the rising competition, Trump unveiled a $500 billion initiative last week to bolster AI infrastructure in the US. This venture, led by SoftBank and OpenAI, aims to strengthen America's position in the global AI race.

The implications of China's AI advancements have sparked concerns about the US losing its edge. The launch of DeepSeek now increases the intensifying competition between the US and China, especially in AI technology.

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• Artificial Intelligence
• China
• Competition
• DeepSeek
• Donald Trump
• Nvidia
• OpenAI
• Silicon Valley
• SoftBank
• Tech Stocks