President Donald Trump has issued a stern warning to American technology companies following the rapid ascent of DeepSeek, a Chinese AI application. Over the weekend, DeepSeek became the top app on the Apple store, a development that Trump described as "a wake-up call" for the U.S. tech industry. Despite existing U.S. export controls on high-performance semiconductors, developers in China successfully launched DeepSeek, a low-cost AI assistant.
Trump expressed admiration for the app's economical model, labeling it "very much a positive development" for the artificial intelligence landscape. However, he acknowledged the competitive threat it poses, even as he maintained his belief in the eventual dominance of U.S. companies in the AI domain.
"The release of DeepSeek AI from a Chinese company should be a wake-up call for our industries that we need to be laser focused on competing," – President Donald Trump.
David Sacks, serving as Trump's White House AI and cryptocurrency czar, remarked on the intense competition in the AI race, viewing DeepSeek's success as evidence of this dynamic. He expressed confidence in U.S. capabilities but cautioned against complacency.
"shows that the AI race will be very competitive." – David Sacks, Trump's White House AI and cryptocurrency czar.
"I'm confident in the U.S. but we can't be complacent," – David Sacks, Trump's White House AI and cryptocurrency czar.
Meanwhile, House Speaker Mike Johnson, R-La., voiced significant concerns about DeepSeek's implications for national security and economic stability. He characterized China as a "terrible trading partner" and called DeepSeek "a serious threat."
"They abuse the system. They steal our intellectual property. They're now trying to get a leg up on us on AI, as you've seen the last day or so," – House Speaker Mike Johnson, R-La.
"It's a serious threat to us and to our economy and our security in every way. So the president takes that seriously, and I think that he will deal with that [in an] appropriate manner." – House Speaker Mike Johnson, R-La.
Rep. John Moolenaar, R-Mich., chair of the House Select Committee on China, echoed these concerns, advocating for more stringent actions to curb DeepSeek's influence. He criticized DeepSeek's censorship of sensitive topics and emphasized the need for tougher export controls.
"The U.S. cannot allow CCP models such as DeepSeek to risk our national security and leverage our technology to advance their AI ambitions. We must work to swiftly place stronger export controls on technologies critical to DeepSeek's AI infrastructure," – Rep. John Moolenaar, R-Mich.
"DeepSeek — a new AI model controlled by the Chinese Communist Party — openly erases the CCP's history of atrocities and oppression," – Rep. John Moolenaar, R-Mich.
Senator Mark Warner, D-Va., defended existing export controls on advanced chip technology, although he acknowledged that further regulation might be necessary. He noted that despite claims to the contrary, U.S. controls still significantly impact China's ability to expand its global cloud infrastructure for AI deployment.
"While I think there's more to learn about DeepSeek's development activities, what's in the public record reveals that the PRC continues [to] prioritize advancement in AI and that export control alone will not stymie their efforts," – Sen. Mark Warner, D-Va.
"Claims that export controls have proved ineffectual, however, are misplaced: DeepSeek's efforts still depended on advanced chips, and PRC hyperscalers' efforts to build out worldwide cloud infrastructure for deployment of these models is still heavily impacted by U.S. controls," – Sen. Mark Warner, D-Va.
Amidst these developments, Trump signed an executive order reversing certain Biden administration policies perceived as hindering AI innovation. This move aligns with his broader strategy to ensure American leadership in cutting-edge technologies.
In contrast to DeepSeek's triumph, another Chinese app, TikTok, experienced temporary disruption when enforcement of a bipartisan law was delayed by Trump. This law would require TikTok to either find a non-Chinese owner or face a ban in the United States.
DeepSeek's rise underscores its impressive performance against competitors like Meta and OpenAI models despite its lower development costs. This has prompted discussions within the Trump administration and Congress about potential new AI policies in response to this emerging challenge.