Author: Wu Yu, Jinshi Data
U.S. President Trump said on Monday that the sudden rise of Chinese artificial intelligence application DeepSeek "should be a wake-up call for American technology companies," and said it was a good thing that Chinese companies developed cheaper and more efficient artificial intelligence models.
Trump said he still expects American technology companies to dominate the field of artificial intelligence, but he acknowledged the challenges posed by low-cost artificial intelligence assistant DeepSeek, which soared to the top of Apple's App Store this past weekend.
"A Chinese company releasing DeepSeek artificial intelligence should be a wake-up call for our industry, and we need to focus on competition," he said during a trip to Florida.
DeepSeek has caused panic in the US tech industry and stock market. According to the little-known Chinese startup behind DeepSeek, DeepSeek performed well in tests compared with competing models from Meta and OpenAI, and it cost much less to develop.
Trump said he believed the low-cost model was a "very positive development" for the artificial intelligence industry as a whole because "instead of spending billions, it would be better to spend less (resources) and hopefully come up with the same solution."
DeepSeek is the latest in a series of Chinese apps that have surged in popularity in the US in recent weeks. Previously, as TikTok was on the verge of being banned, Americans turned to Chinese apps Xiaohongshu and Lemon8 as alternatives to TikTok. TikTok eventually shut down its U.S. service less than a day later and relaunched for existing users, but it is still not available for download from Apple and Google app stores.
Last week, Trump signed an executive order to cancel certain Biden administration regulations on artificial intelligence development, which Trump said hindered the development of the industry.
However, it is unclear what new AI policies, if any, the Trump administration or Congress might adopt in response to the rise of DeepSeek.
Rep. John Moolenaar, a Republican from Michigan and chairman of the House Select Committee on China, said on Monday that he would like to see the United States take action to curb the development of DeepSeek.
DeepSeek's developers said they developed the app despite current U.S. controls on the export of high-performance semiconductors. This sparked a heated online debate on Monday, including the effects of hardware restrictions and their future.
Senator Mark Warner, a Virginia Democrat, defended existing export controls related to advanced chip technology and said more regulation may be needed.
House Speaker Mike Johnson called DeepSeek "a serious threat."
David Sacks, the White House director of artificial intelligence and cryptocurrency, said in an article on X that DeepSeek's success "shows that the AI race is going to be intense." He also said that former President Biden's previous executive order on the issue "hindered" American artificial intelligence companies.
"I have confidence in America, but we cannot be complacent," he wrote.
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