After it shocked tech companies on Monday, US President Donald Trump issued a warning against the affordable Foreign AI tool DeepSeek, calling it a “wake up call” for the country.
Trump told a Democratic legislative retreat that “hopefully the launch of DeepSeek AI from a Chinese firm should be a wake-up phone for our industries, where we need to be relentlessly focused on competing to succeed.”
Trump, but, suggested that the impact to Silicon Valley may finally have a good effect by encouraging more cost-effective technology.
” I do suggest that could be a good”, he said. ” So instead of spending billions and billions, you’ll invest less, and you’ll come up with maybe the same solution”.
What is DeepSeek?
Liang Wenfeng’s company, DeepSeek, has developed a number of dynamic AI models over the past month, drawing some attention from the sector.
Its V3 type, in particular, brought the business into the light. The woman’s content restrictions on delicate subjects involving the Chinese state and its management, according to The Wall Street Journal, have posed questions about its ability to compete successfully in the world market.
Additionally, the R1 type was unveiled last week and received a lot of interest this week as a result of the company’s disclosure to The Wall Street Journal regarding its remarkably low operating costs.
Why does the US perceive it as a risk?
The business has the ability to outperform leading US Artificial companies, achieving similar outcomes with only a fraction of the investment made by American companies.
The R1 type is reported to rival US-developed designs, quite as OpenAI’s ChatGPT, while operating at a fraction of the cost.
Investors were stung by the media, which raised concerns about possible disruptions to Silicon Valley’s expanding AI supply chain. The results were sharp and far-reaching, with the S&, P 500 dropping 1.7 %, led by steep costs in technology stocks. Businesses heavily invested in AI equipment, such as Microsoft and Meta Platforms, experienced considerable declines, while bond yields fell as traders shifted toward safer property.
