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Trump Praises DeepSeek: IT Experts Predict Competition with ChatGPT

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Trump Praises DeepSeek: IT Experts Predict Competition with ChatGPT

(3 Minutes Read)

DeepSeek says its chatbot uses less data and is cheaper than US equivalents while offering the same quality.

US President Donald Trump praised the new AI chatbot released by Chinese company DeepSeek, which made tech stocks tumble on Monday. He added that it was a fact, it would help corporations across the world.  He was speaking at a Republican policy retreat in Florida.

DeepSeek says its chatbot uses less data and is cheaper than US equivalents while offering the same quality. Nvidia, an AI chipmaking giant, lost a sixth of its value, and shares of other tech companies like Google and Microsoft likewise took a hit. The S&P 500 fell 1.6% in early trading Monday. Big Tech stocks that have been the market’s biggest stars took the heaviest losses, with Nvidia down 11.2%, and they dragged the Nasdaq composite down 2.7%.

The DeepSeek chatbot had overtaken US rival ChatGPT in downloads on the Apple iPhone store. The release of the DeepSeek AI from a Chinese company should be a wake-up call for the US industry in that we need to be laser-focused on competing to win” the US president added.

DeepSeek’s AI assistant became the No. 1 downloaded free app on Apple’s iPhone store Monday, propelled by curiosity about the ChatGPT competitor. Part of what’s worrying some U.S. tech industry observers is that the Chinese startup has caught up with the American companies at the forefront of generative AI at a fraction of the cost.

The startup DeepSeek was founded in 2023 in Hangzhou, China, and released its first AI large language model later that year. Its CEO Liang Wenfeng previously co-founded one of China’s top hedge funds, High-Flyer, which focuses on AI-driven quantitative trading.

The fund, by 2022, had amassed a cluster of 10,000 of California-based Nvidia’s high-performance A100 graphics processor chips that are used to build and run AI systems, according to a post that summer on Chinese social media platform WeChat. The U.S. soon after restricted sales of those chips to China.

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Andreessen, who has advised Trump on tech policy, has warned that the U.S. government’s overregulation of the AI industry will hinder American companies and enable China to gain a competitive advantage.