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| US President Donald Trump | Photo: Reuters |
President Donald Trump has called the launch of China’s AI DeepSeek a wake-up call for American tech companies, urging them to stay competitive. However, he also sees the rise of cheaper and faster Chinese AI models as a positive development for the industry.
Speaking in Florida on Monday, Trump said, “The release of DeepSeek AI by a Chinese company serves as a warning to our companies it’s time to focus on winning the competition.”
Following DeepSeek’s release, global investors reacted by selling off tech stocks, fearing that the dominance of US-based AI companies could be threatened. On Wall Street, stock prices tumbled, with Nvidia’s market value plunging by $50 billion. Shares of other major American tech firms also declined as concerns grew over China’s low-cost AI innovation.
Despite the economic impact, Trump welcomed the rise of cheaper, high-speed AI models from China, saying, “This is actually a good thing because it means you don’t have to spend as much money. I see this as a resource, not a threat.”
Explaining his stance, he added, “Our companies will respond. Hopefully, they won’t have to spend too much but will achieve the same results.”
Trump also claimed that Chinese leaders have acknowledged that the US has the world’s top scientists. He suggested that if China’s AI models are more affordable, American companies may adopt them for cost-efficiency.
“We always have the ideas, we’re always first. So if you can achieve the same solutions at a lower cost, that’s a positive thing,” Trump concluded.
His comments highlight a shifting perspective on China’s role in AI development, balancing concerns over competition with a pragmatic view on leveraging cost-effective technology.