MIAMI President of the United States (US), Donald Trump, on Monday 27 January, stated that the launch of DeepSeek, a low-cost artificial intelligence (AI) model from China, is a serious warning to US technology companies. The emergence of DeepSek AI is also said to trigger a significant decline in the stocks of the technology sector in the US.

"Hopefully, the launch of DeepSek AI from Chinese companies will serve as a warning to our industry that we should focus fully on competing to win," Trump said while speaking at a Republican congressional retreat in Miami.

Despite acknowledging the threat posed by DeepSeeek, Trump also sees opportunities behind the pressure. He mentioned that this situation could encourage US technology companies to innovate more efficiently, both in terms of cost and time.

"I actually see this as a positive opportunity," Trump said. "Instead of spending billions of dollars, you can allocate more efficient resources and still find the same solution," he added.

This statement came after Nvidia, one of the largest chip producers in the US, experienced a significant decline in market value.

Nvidia, known as a major semiconductor provider for AI apps, has lost nearly USD 600 billion from its market cap due to DeepSek's appearance.

DeepSeek, a sophisticated chatbot developed by a startup from Hangzhou, East China, shows the ability to compete with AI's pioneer products from the US.

The technology is reported to have significantly lower operating costs, making it a potential threat to the dominance of US tech companies.

In response to the challenge, Trump has announced a large joint venture to strengthen the AI ecosystem in the US. In last week's announcement, after his inauguration for a second term, he said that the US government would allocate USD 500 billion worth of investment to build AI infrastructure.

The project will be led by a collaboration between Japanese tech giant SoftBank and development company ChatGPT, OpenAI.

This investment aims to increase the competitiveness of the US in the global technology race, particularly in the development of artificial intelligence.

DeepSek is a symbol of China's progress in the AI industry, challenging the traditional dominance that Silicon Valley has been holding.

With more than just technological competition, this issue has also raised concerns about US national security, especially in terms of control over strategic data and technology.

"This competition is not only about the economy, but also our national security," Trump stressed.


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