U.S. President Donald Trump on Monday said the emergence of Chinese AI technology should motivate American companies to enhance their competitiveness.
Speaking in Florida, he referred to Chinese startup DeepSeek’s advancements as a “wake-up call” for the U.S. tech industry.
“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 to win,” Trump said. He acknowledged that DeepSeek’s cheaper and faster AI development methods could challenge U.S.-based AI leaders.
Investors reacted to the news with a sell-off in technology stocks globally, fearing the impact of a low-cost Chinese AI model on U.S. tech dominance. Trump, however, described the development as a potential positive.
“I’ve been reading about China and some of the companies in China, one in particular coming up with a faster method of AI and much less expensive method, and that’s good because you don’t have to spend as much money. I view that as a positive, as an asset,” he said.
Trump expressed optimism that U.S. companies would adapt quickly to such advancements. “We always have the ideas. We’re always first. So I would say that’s a positive that could be very much a positive development. So instead of spending billions and billions, you’ll spend less, and you’ll come up with, hopefully, the same solution,” he added.
He also highlighted discussions with Chinese leaders, who acknowledged the United States’ leading scientific expertise. Trump suggested this recognition underscored the need for the U.S. tech industry to stay ahead in innovation while embracing cost-efficient methods.
