The United States official is reviewing the national security impact of China's artificial intelligence (AI) application, DeepSeek, according to a White House Press Secretary, Krypto Leavitt, on Tuesday, January 28. Meanwhile, President Donald Trump's crypto adviser stated that there may have been theft of intellectual property rights related to the application.
The US National Security Council is evaluating the implications of the app. "This is a warning to the American AI industry," Leavitt said, citing Trump's statement the day before. He also confirmed that the White House was working to ensure " America's AI dominance."
Global investors released tech stocks on Monday over concerns that the presence of China's low-cost AI models would threaten the dominance of US-based AI companies, such as OpenAI and Google.
When interviewed by Fox News, White House AI and Crypto Policy Chief David Sacks, was asked if there was any intellectual property theft in DeepSek's success.
"That might happen. There is a technique in AI called distillation, where one model learns from another model," said Sacks, quoted by VOI from Reuters.
"I think in the next few months, we'll see leading AI companies taking steps to prevent this distillation. That will definitely slow down the emergence of mock AI models," he added.
During his tenure, former US President Joe Biden imposed extensive export restrictions on AI chips and manufacturing equipment to slow AI development in China.
President Donald Trump on Monday, January 27, said that the presence of the DeepSek app should be a driving force for American companies to be more competitive.
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"The release of DeepSek AI from Chinese companies should be a warning to our industry that we should focus more on winning the competition," Trump said.
Sacks also criticized American AI companies which he said were "too complacent and lost focus."
Trump revealed that Chinese leaders had told him that the US has the most intelligent scientists in the world. He believes that if the Chinese industry can create cheaper AI technology, then US companies will follow suit.
"We always have new ideas. We are always the first. So I think this can be a positive development. That way, the company doesn't have to spend billions of dollars, but it can still get the same solution," Trump said.
Meanwhile, efforts to stop supplying AI chips to China from US companies such as Nvidia and AMD are led by the US Department of Commerce. Trump's chief department, Howard Lutnick, is scheduled to undergo a nomination hearing on Wednesday, January 29.
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