Trump Challenges U.S. Tech Industry with Chinese AI Competition

President Donald Trump highlighted the emergence of Chinese startup DeepSeek's cost-effective AI technology as a motivator for American companies. He sees this as a positive challenge for U.S. industries to enhance their competitiveness. Nonetheless, the announcement concerned global technology investors about the threat to U.S. AI dominance.

President Donald Trump on Monday called on American companies to up their game, as the emergence of Chinese startup DeepSeek's technology offers a cheaper, faster method of artificial intelligence.

Trump, speaking in Florida, described DeepSeek's innovation as a 'wake-up call' for the U.S., urging domestic industries to remain focused on outperforming global competitors. His remarks came amid global investor concerns over the impact of China's low-cost AI models challenging the current dominance of American AI leaders.

Reflecting on conversations with Chinese leaders, Trump noted their acknowledgment of U.S. scientific brilliance. He expressed optimism, suggesting that U.S. companies could also adopt cost-saving measures in AI development, reinforcing their innovative edge in the long term.

(With inputs from agencies.)