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DeepSeek AI: A Game-Changer for Tech, Trump Calls It a ‘Wake-Up Call’ for US

US President Donald Trump has described the rise of Chinese tech company DeepSeek as “a wake-up call” for America’s technology sector. The launch of DeepSeek’s artificial intelligence (AI) model, which claims to deliver cutting-edge performance at a fraction of the cost of its competitors, has sent shockwaves through Wall Street and raised serious questions about the future of US dominance in AI.

The aftermath has been immediate, with shares of major tech firms, including Nvidia, plummeting. Nvidia alone saw a staggering $600 billion loss in market value, reflecting the uncertainty in the market.

DeepSeek’s R1 model, which its developers claim was trained for just $6 million—far less than the billions typically spent—has become the most downloaded app in the US within a week of its release. The model’s cost-efficiency has sparked a heated debate about the potential disruption it could bring to the global AI industry.

Trump Reacts to DeepSeek’s Rise
While acknowledging the breakthrough, President Trump expressed optimism. “If you could do it cheaper, if you could do it [for] less [and] get to the same end result, I think that’s a good thing for us,” he said during a conversation aboard Air Force One. He reassured that the US would continue to dominate the AI field.

Founded in 2023 by Liang Wenfeng in Hangzhou, China, DeepSeek has made headlines for its innovative approach to AI development. The company’s open-source model, DeepSeek-V3, has reportedly reduced the computational requirements for training AI models, enabling high performance on significantly fewer chips—2,000 compared to the estimated 16,000 used by leading US models.

DeepSeek’s ability to innovate despite limited access to advanced US chips, which are restricted by export bans, has surprised many. Marina Zhang, an expert on China’s high-tech industries, noted that the company’s success demonstrates the power of “software ingenuity and data efficiency” over hardware constraints.

While some have praised the development, including OpenAI’s Sam Altman, who called it “an impressive model,” others remain skeptical. Elon Musk questioned DeepSeek’s claims, suggesting the company may have access to thousands of Nvidia chips despite US export restrictions.

DeepSeek’s emergence has sent ripples across global markets. In Asia, shares of AI-related firms in Japan dropped sharply, pushing the Nikkei 225 down by 1.4%. Experts believe DeepSeek’s cost-effective model could lead to broader adoption of AI, potentially accelerating the growth of the industry worldwide.

As the debate continues, DeepSeek’s success has put a spotlight on the shifting dynamics in the global tech industry, signaling a new era of competition in artificial intelligence.

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