28-1-2025 (MIAMI) Former US President Donald Trump has characterised the emergence of DeepSeek, a low-cost Chinese artificial intelligence model, as a crucial wake-up call for American technology firms amidst a significant downturn in tech shares.
Speaking at a Republican congressional retreat in Miami on Monday, Trump emphasised the need for heightened competitiveness in the US tech sector. “The unveiling of DeepSeek AI should serve as a stark reminder that we must maintain laser-sharp focus on winning this technological race,” Trump declared to assembled party members.
The former president, however, found a silver lining in the market disruption, suggesting it could catalyse more cost-effective innovation within Silicon Valley. “There’s potentially a positive aspect to this development,” Trump noted. “Rather than committing billions upon billions, companies might achieve comparable results with more modest investments.”
The remarks came in the wake of a substantial market correction that saw Nvidia, the premier manufacturer of AI-focused semiconductors, experience a staggering US$600 billion reduction in market capitalisation. The tech sector bloodbath was triggered by DeepSeek’s demonstration of capabilities that reportedly rival those of leading American AI systems, achieved with significantly lower development costs.
DeepSeek, headquartered in Hangzhou, has garnered attention for potentially matching the sophisticated capabilities of US-based AI leaders whilst operating on a notably leaner budget. The startup’s breakthrough comes at a particularly sensitive time, just days after Trump’s announcement of an ambitious US$500 billion initiative, in partnership with Japan’s SoftBank and OpenAI, to bolster American AI infrastructure following his return to office.
