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Trump says DeepSeek should be a 'wake-up call' for tech giants

Jan 28, 2025 - businessinsider.com
President Donald Trump addressed the rise of DeepSeek, a Chinese AI app, highlighting its ability to train AI more cheaply as a "positive" development and a "wake-up call" for the US tech industry. DeepSeek's success, marked by its top position on Apple's free downloads chart, challenges US tech dominance and underscores China's significant investment in its tech sector. This development comes amid US efforts to restrict China's access to advanced semiconductor technology. Trump's comments emphasize the need for the US to remain competitive in AI, as evidenced by the launch of the Stargate Project, a $500 billion AI infrastructure initiative in partnership with OpenAI, Oracle, SoftBank, and MGX.

Experts suggest that DeepSeek's emergence could motivate US companies like OpenAI to open their source code, fostering broader participation in AI development. The situation highlights the potential for a competitive race in AI pricing and adoption, contrasting with US Big Tech's focus on substantial investments in hardware and sustainable energy. Analysts note the fast-paced nature of the AI sector, with breakthroughs possible from any global player, including China and the US. This dynamic environment serves as a reminder that technology restrictions may not be effective, urging American policymakers to reconsider their strategies.

Key takeaways:

  • President Donald Trump praised the Chinese AI app DeepSeek for its cost-effective AI training capabilities, viewing it as a positive development and a wake-up call for US tech industries.
  • DeepSeek's rise to the top of Apple's free downloads chart has challenged the notion of US tech dominance, potentially benefiting the future of AI.
  • The US has expanded export controls on advanced semiconductor technology to China, while China continues to invest heavily in its tech sector to reduce reliance on US technology.
  • The Stargate Project, a joint AI venture announced by Trump, aims to invest $500 billion in AI infrastructure across the US by 2029, creating 100,000 jobs.
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