China’s DeepSeek AI should be a ‘wakeup call’ for US companies, says Trump

With the announcement of China’s DeepSeek, investors in AI companies sold stocks heavily due to concerns over emergence of a low-cost Chinese artificial intelligence model which could threaten the dominance of American AI companies in the market.

The US share markets indices S&P 500 and the Nasdaq hit over one-week low on Monday. Nvidia, whose chips are the top choice for powering AI applications, dropped 11.7%, while a gauge of semiconductor stocks dropped 6.5%.

Trump further said, “I’ve been reading about China and some of the companies in China, one in particular coming up with a faster method of AI and a much less expensive method, and that’s good because you don’t have to spend as much money. I view that as a positive, as an asset.”

Trump said that he views the development of a new and faster AI model in China as “positive” since the spending would go down and the results would be similar.

Trump claimed that Chinese leaders had told him that the US had the most brilliant scientists in the world and added that if Chinese companies can build cheaper AI technology, then US companies should also follow suit.

ChatGPT maker OpenAI’s CEO Sam Altman has said that China’s DeepSeek R1 is an impressive model.

In a post on X, Altman said “DeepSeek’s R1 is an impressive model, particularly around what they’re able to deliver for the price. We will obviously deliver much better models and also it’s legit invigorating to have a new competitor! we will pull up some releases.”

(with inputs from Reuters)

From the homepage

Tejashwi CM face, Mukesh Sahani makes his way to Deputy CM as INDIA presents united front

BJP plans over 1,000 CAA camps across West Bengal, to focus on Bangladesh-bordering districts ahead of SIR and polls

Algerian-French artist’s work vandalised at Kochi art gallery over ‘obscenity’ allegations