Trump says China's DeepSeek AI ‘should be a wake-up call’ for American tech companies

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U.S. President Donald Trump speaks during a House Republican members league gathering successful Trump National Doral resort, successful Miami, Florida, U.S. Jan. 27, 2025. 

Elizabeth Frantz | Reuters

President Donald Trump said Monday that the abrupt emergence of Chinese AI app DeepSeek "should beryllium a wake-up call" for America's tech companies, arsenic the runaway popularity of yet different Chinese app presented caller questions for the medication and legislature leaders. 

Trump said that helium inactive expected U.S. tech companies to predominate artificial intelligence, but helium acknowledged the situation posed by DeepSeek, a low-cost AI adjunct that rose to No. 1 connected the Apple app store over the weekend. 

"The merchandise of DeepSeek AI from a Chinese institution should beryllium a wake-up telephone for our industries that we request to beryllium laser focused connected competing," helium said portion traveling successful Florida. 

DeepSeek is causing a panic within U.S. tech companies and in the banal market because it has performed good successful tests compared to competing AI models from Meta and OpenAI, portion it was developed at a overmuch little cost, according to the little-known Chinese startup down DeepSeek. 

Trump said helium considered the low-cost exemplary to beryllium "very overmuch a affirmative development" for AI wide due to the fact that "instead of spending billions and billions, you'll walk less, and you'll travel up with, hopefully, the aforesaid solution." 

DeepSeek is the latest successful a bid of Chinese apps to surge successful popularity successful the U.S. successful caller weeks. Americans embraced Chinese apps RedNote and Lemon8 arsenic alternatives to TikTok, erstwhile TikTok was connected the verge of being banned temporarily successful the U.S. for its ain links to China. 

TikTok went acheronian for little past a time and came backmost online for existing users aft Trump delayed enforcement of a bipartisan instrumentality requiring either a caller non-Chinese proprietor oregon a ban. TikTok, though, remains unavailable for caller downloads from the Apple and Google app stores.

Security experts person expressed interest astir TikTok and different apps with links to China, including from a privateness standpoint

Last week, Trump signed an enforcement bid undoing definite Biden medication rules about AI development that Trump said had held the manufacture back. 

It wasn't instantly clear, though, what caller AI policies, if any, the Trump medication oregon Congress mightiness prosecute successful effect to DeepSeek's rise. 

Rep. John Moolenaar, R-Mich., the seat of the House Select Committee connected China, said Monday helium wanted to spot the U.S. enactment to dilatory down DeepSeek, going further than Trump did successful his remarks. 

"DeepSeek — a caller AI exemplary controlled by the Chinese Communist Party — openly erases the CCP's past of atrocities and oppression," helium said, referring to reports that DeepSeek censors topics specified arsenic Tiananmen Square

"The U.S. cannot let CCP models specified arsenic DeepSeek to hazard our nationalist information and leverage our exertion to beforehand their AI ambitions. We indispensable enactment to swiftly spot stronger export controls connected technologies captious to DeepSeek's AI infrastructure," helium said. 

DeepSeek's developers accidental they created the app contempt existing U.S. controls connected the export of high-performing semiconductors, starring to a vigorous online statement Monday astir however effectual those controls person been and what their aboriginal should be. 

Sen. Mark Warner, D-Va., defended existing export controls related to precocious spot exertion and said that much regularisation mightiness beryllium needed. 

"While I deliberation there's much to larn astir DeepSeek's improvement activities, what's successful the nationalist grounds reveals that the PRC continues [to] prioritize advancement successful AI and that export power unsocial volition not stymie their efforts," helium said. 

"Claims that export controls person proved ineffectual, however, are misplaced: DeepSeek's efforts inactive depended connected precocious chips, and PRC hyperscalers' efforts to physique retired worldwide unreality infrastructure for deployment of these models is inactive heavy impacted by U.S. controls," helium said. 

House Speaker Mike Johnson, R-La., called DeepSeek "a superior threat" and said China had been a "terrible trading partner." 

"They maltreatment the system. They bargain our intelligence property. They're present trying to get a limb up connected america connected AI, arsenic you've seen the past time oregon so," helium said. "It's a superior menace to america and to our system and our information successful each way. So the president takes that seriously, and I deliberation that helium volition woody with that [in an] due manner." 

David Sacks, Trump's White House AI and cryptocurrency czar, said successful a station connected X that DeepSeek's occurrence "shows that the AI contention volition beryllium precise competitive." He besides said that erstwhile President Joe Biden had "hamstrung" American AI companies with a erstwhile enforcement bid connected the subject. 

"I'm assured successful the U.S. but we can't beryllium complacent," helium wrote.

Kevin Breuninger, CNBC and Katherine Doyle contributed.

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