On Monday, US President Donald Trump referred to the affordable Chinese AI model DeepSeek as a “wake-up call” for American companies following its launch, which led to a sharp decline in tech stocks.
Trump stated that while the shock could be unsettling, it might also have a “positive” effect on Silicon Valley by pushing it to innovate more cost-effectively.
Trump said, “I would say that could be a positive, So instead of spending billions and billions, you’ll spend less, and you’ll come up with hopefully the same solution.”
Trump’s comments come after US chipmaker Nvidia, whose semiconductors power the AI industry, led a tech stock crash that cost the company over $600 billion.
DeepSeek, a business based in the eastern Chinese city of Hangzhou, has produced a chatbot capable of matching the capacity of US AI leaders for a fraction of the investment invested by American enterprises.
Trump announced last week, only one week after taking office for a second term, a $500 billion project to develop AI infrastructure in the US, headed by ChatGPT company OpenAI and Japanese behemoth SoftBank.
