DeepSeek breaks hardware limitations, sparking an intense online debate.
Written by: Wu Yu, Jin Shi Data
U.S. President Trump stated on Monday that the sudden rise of the Chinese artificial intelligence application DeepSeek "should ring alarm bells for American tech companies," and he noted that it is a good thing that Chinese companies are developing cheaper and more efficient AI models.
Trump expressed that he still expects American tech companies to dominate the AI field, but he acknowledged the challenges posed by the low-cost AI assistant DeepSeek. DeepSeek soared to the top of the Apple App Store over the past weekend.
"A Chinese company releasing the DeepSeek AI should ring alarm bells for our industry; we need to focus on competition," he said while traveling in Florida.
DeepSeek has caused panic in the U.S. tech industry and stock market. According to the little-known Chinese startup behind DeepSeek, it performed well in tests compared to competitive models from Meta and OpenAI, while its development costs are significantly lower.
Trump stated that he believes the low-cost model is a "very positive development" for the AI industry as a whole, because "instead of investing billions, it’s better to spend less (resources) and hope to achieve the same solutions."
DeepSeek is the latest in a series of Chinese applications that have surged in popularity in the U.S. in recent weeks. Previously, as TikTok faced a ban, Americans turned to Chinese apps Xiaohongshu and Lemon8 as alternatives. Ultimately, TikTok was relaunched for existing users less than a day after shutting down its services in the U.S., but it remains unavailable for download from the Apple and Google app stores.
Last week, Trump signed an executive order rescinding certain regulations on AI development from the Biden administration, which he claimed hindered the industry's growth.
However, it remains unclear what new AI policies the Trump administration or Congress might implement (if any) in response to the rise of DeepSeek.
John Moolenaar, chairman of the House China Task Force and Republican Congressman from Michigan, stated on Monday that he hopes to see the U.S. take action to curb the development of DeepSeek.
The developers of DeepSeek said that despite the current U.S. export controls on high-performance semiconductors, they were still able to develop the application. This sparked an intense online debate on Monday, including the effects of hardware limitations and their future.
Virginia Democratic Senator Mark Warner defended the existing export controls related to advanced chip technology and stated that more regulation may be needed.
House Speaker Mike Johnson called DeepSeek "a serious threat."
David Sacks, the White House's AI and cryptocurrency director, wrote in a post on X that DeepSeek's success "indicates that the AI race will be very fierce." He also mentioned that the executive order previously issued by former President Biden on this issue "hindered" American AI companies.
"I have confidence in America, but we cannot be complacent," he wrote.
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