Trump Warns US Firms Amid China's DeepSeek AI Breakthrough

The recent release of the Chinese AI model DeepSeek has triggered significant concern in the U.S., with former President Donald Trump calling it a 'wake-up call' for American industries. DeepSeek's open-source model, which operates at a fraction of the cost of comparable U.S. technologies, has raised alarms about competition in the AI sector, leading to a dramatic sell-off in U.S. tech stocks, including a $600 billion loss for Nvidia. Experts suggest the timing of DeepSeek's release was strategic, aimed at sending a message to the new Trump administration. Trump acknowledged that while DeepSeek represents a challenge, it could also spur innovation among U.S. companies by showcasing cost-effective AI methods. He emphasized the need for American firms to adapt to these developments, suggesting they can achieve similar results without exorbitant spending. Despite the competitive threat, Trump maintains an optimistic view of U.S. technological capabilities in the face of growing Chinese advancements.