US President Donald Trump has issued a warning, calling the rise of DeepSeek, a well-known Chinese artificial intelligence model that resembles ChatGPT, a “wake-up call” for Silicon Valley.
Last week, the inauguration of Donald Trump overshadowed the debut of the most recent DeepSeek model R1, which at first attracted little notice.
However, DeepSeek’s chatbot overtook OpenAI’s ChatGPT as the most downloaded free software on Apple’s US software Store over the weekend.
US IT giants’ stocks were shook Monday night by the rise of a Chinese AI start-up, raising fears that the new, low-cost AI model will challenge their hegemony.
On Monday, tech stocks fell sharply, with chip manufacturer Nvidia seeing roughly 17% declines. With a share price decline of almost $589 billion, Nvidia experienced the largest one-day decline in market value on Wall Street in history.
DeepSeek became the most downloaded free app in the United States within a week of its release. It asserts that the cost of creating its huge language AI model was far lower than those of its competitors, such as OpenAI, which trains its systems on enormous amounts of data using more costly Nvidia computers.
The DeepSeek release “should be a wake-up call for our industries that we need to be laser-focused on competing to win,” Donald Trump stated in response to the events on Monday.
“Instead of spending billions and billions, you’ll spend less, and you’ll come up with hopefully the same solution,” the US president continued, arguing that it may be a “positive” for the nation’s IT giants.
OpenAI’s Sam Altman reacts
OpenAI chief executive Sam Altman said in a post on X it was “legit invigorating to have a new competitor”, calling DeepSeek’s R1 “an impressive model, particularly around what they’re able to deliver for the price”.
But he promised to expedite some OpenAI releases.
This comes as the US government is pushing to either compel the sale of TikTok, a Chinese-owned company, or outlaw it in the country.
The development is noteworthy since Nvidia has become one of the most valuable firms in the world due of the AI boom that was sparked with the introduction of ChatGPT in late 2022.
The success of DeepSeek, according to David Sacks, Trump’s AI advisor and well-known tech investor, supported the White House’s decision to revoke executive orders that set safety guidelines for AI development and were issued under Joe Biden.
The regulations “would have hamstrung American AI companies without any guarantee that China would follow suit,” Sacks wrote on X.
Adam Kovacevich, CEO of the tech industry trade group Chamber of Progress, echoed the sentiment: “Now the top AI concern has to be ensuring (the United States) wins.”
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