President Donald Trump has characterized China’s recent AI advancement, DeepSeek, as both a significant challenge and a potential catalyst for American innovation. He referred to it as a “wake-up call” and suggested that its cost-effective development could inspire greater efficiency within U.S. industries.
DeepSeek’s emergence has had a notable impact on the U.S. stock market, with the Nasdaq Composite Index declining by approximately 3%. Nvidia, a leading AI chip manufacturer, experienced a significant stock drop of nearly 17%. These market reactions reflect growing concerns about the United States’ position in the global AI landscape.
Developed at a cost of around $5.6 million—substantially less than typical U.S. investments—DeepSeek’s AI model has quickly risen to prominence, becoming the top-rated free app on the iOS App Store in the United States. This development has intensified discussions about international AI competitiveness and the strategic allocation of resources.
While acknowledging the competitive nature of this advancement, President Trump views it as an opportunity for the United States to reassess and enhance its innovation strategies, emphasizing the principle of “spend less, achieve more.”
