China’s DeepSeek AI App a Wake-Up Call for U.S. Tech Firms

President Donald Trump has labeled the emergence of China’s DeepSeek AI as a crucial “wake-up call” for technology companies in the United States, emphasizing the need for American businesses to develop cheaper and faster artificial intelligence solutions.

DeepSeek, created by Hangzhou-based startup DeepSeek Inc., launched recently and immediately ascended to the top of Apple’s US App Store, outperforming OpenAI’s ChatGPT.

During a speech in Florida, Trump commented on the app’s rapid success and its affordability. He stated, “That’s good because you don’t have to spend this much money. I view that as a positive, as an asset.”

He stressed that the introduction of DeepSeek AI should motivate US industries to refocus their efforts on competitiveness. “We need to be laser focused on competing to win,” he stated, urging American firms to create more budget-friendly options. “So instead of spending billions and billions, you’ll spend less” for similar results, he added. Trump expressed confidence in the capabilities of American scientists, asserting that it shouldn't be difficult for them to keep pace with DeepSeek.

DeepSeek’s rapid ascent occurs in the context of ongoing US-China competition in the AI sector, marked by U.S. restrictions on China’s access to advanced semiconductor technology. However, DeepSeek’s performance, achieved with less advanced chips compared to those used by ChatGPT and others, raises questions about the future of U.S. technological leadership.

The response among U.S. officials regarding DeepSeek is mixed. David Sacks, a senior advisor under Trump, echoed the president's sentiments, stating on X that DeepSeek “shows that the AI race will be very competitive.” On the contrary, House Speaker Mike Johnson viewed the new AI as “a serious threat,” accusing China of “abusing” the trade system and “stealing” American intellectual property.

Furthermore, Rep. John Moolenaar, chair of the U.S. House Select Committee on China, expressed concerns about the app's implications for national security. He warned, “The US cannot allow CCP Chinese Communist Party models such as DeepSeek to risk our national security and leverage our technology to advance their AI ambitions.” He called for the United States to implement stronger export controls on technologies critical to the infrastructure of DeepSeek’s AI.

AI, China, Technology