Trump Warns China’s DeepSeek AI Should Alert U.S. Tech Companies to Intensified Competition
The rapid rise of DeepSeek shakes U.S. tech markets and raises new concerns over national security and AI development.
President Donald Trump warned on Monday that the swift rise of China's DeepSeek AI should serve as a “wake-up call” for American tech companies. The Chinese app, which quickly soared to the top spot on the Apple App Store over the weekend, has raised alarm among U.S. tech firms and investors alike. DeepSeek, a cost-effective AI assistant developed by a lesser-known Chinese startup, has outperformed competing models from companies like Meta and OpenAI in tests, igniting concerns within the tech industry.
Speaking in Florida, Trump acknowledged the challenge posed by the app but expressed confidence that U.S. tech companies would continue to lead the artificial intelligence sector. “The release of DeepSeek AI from a Chinese company should be a wake-up call for our industries that we need to be laser-focused on competing,” he stated.
DeepSeek’s rapid success has prompted panic in U.S. tech markets due to its low-cost development compared to the far more expensive models from American firms. Trump, however, described this cost-effective model as “a positive development” for AI, suggesting that spending less to achieve similar outcomes could be beneficial for the industry overall.
This is not the first time a Chinese app has caused waves in the United States. In recent months, apps like RedNote and Lemon8 gained traction as alternatives to TikTok, which faced a potential ban due to its connections to China. While TikTok was temporarily removed from U.S. app stores, it quickly returned after Trump delayed enforcing a bipartisan law that could have forced a sale or a complete ban. However, TikTok remains unavailable for new downloads in the U.S.
DeepSeek's rise is fueling concerns among security experts, particularly regarding privacy issues linked to apps with ties to China. Last week, Trump signed an executive order undoing certain Biden-era AI development restrictions, claiming that these rules were hindering progress in the sector. However, it remains unclear what new policies, if any, the Trump administration or Congress may propose in response to DeepSeek’s success.
Rep. John Moolenaar (R-Mich.), chair of the House Select Committee on China, went a step further than Trump, suggesting that the U.S. must act swiftly to curtail DeepSeek's influence. “DeepSeek — a new AI model controlled by the Chinese Communist Party — openly erases the CCP’s history of atrocities and oppression,” Moolenaar said, referring to reports that DeepSeek censors sensitive topics like the Tiananmen Square massacre. He emphasized that U.S. national security could be at risk, calling for stronger export controls on technologies crucial to DeepSeek’s infrastructure.
In response to these concerns, DeepSeek’s developers assert that they created the app despite U.S. export restrictions on advanced semiconductor technology. This has sparked a heated debate online about the effectiveness of these controls and the future of technology exports.
Sen. Mark Warner (D-Va.) defended current export controls, noting that while more regulation might be necessary, the existing rules have still impacted China’s AI development efforts. “DeepSeek’s success depended on advanced chips, and the PRC's efforts to build global cloud infrastructure are still heavily impacted by U.S. controls,” Warner said.
House Speaker Mike Johnson (R-La.) called DeepSeek a “serious threat,” accusing China of abusing trade practices and stealing intellectual property. “They’re now trying to get a leg up on us in AI,” he said, underscoring the economic and security implications of China’s growing technological prowess.
David Sacks, Trump’s White House AI and cryptocurrency advisor, weighed in on the matter, stating that DeepSeek’s rise signals an intensely competitive AI race. He also criticized President Joe Biden for an executive order that he believes hindered American AI companies. “We can’t be complacent,” Sacks warned.
As the U.S. faces increasing competition in the AI field, Trump’s comments and the growing debate over DeepSeek highlight the importance of strategic policies and technological advancements in maintaining American leadership in the global AI race.