Progress of Chinese AI tool DeepSeek has raised concerns for the U.S. tech companies after it hit tech stocks on Wall Street. DeepSeek, a low-cost Chinese AI app, hit No. 1 on the Apple app store. Donald Trump has called it a wake up alarm for the U.S. tech companies.
Trump stressed the need for U.S. tech companies to focus on competing to win after the release of Chinese AI tool DeepSeek. He also said that this blow to Silicon Valley could be effective if it encourages the industry to strive for cost-effective innovations.
DeepSeek’s performance has caused panic in U.S. tech. Developed at a lower cost, DeepSeek outperforms competitors, shaking U.S. stock markets. DeepSeek’s low cost could lead to the same AI results without spending billions or millions. DeepSeek joins RedNote and Lemon8 in gaining U.S. popularity amid TikTok controversy. Americans turned to RedNote and Lemon8 while TikTok faced potential U.S. ban. TikTok was temporarily banned but returned after Trump delayed enforcement of a law. TikTok cannot be downloaded from the Apple and Google app stores.
DeepSeek’s developers created the app despite U.S. semiconductor export controls, sparking debate. David Sacks, Trump’s AI czar, said DeepSeek’s success shows a competitive AI race. Sacks claimed Biden’s executive order hindered American AI companies’ progress. Sacks expressed confidence in the U.S. but warned against complacency in AI development.
