Chicago January 28, 2025
US President Donald Trump has sounded the alarm for Silicon Valley after China’s new artificial intelligence model, DeepSeek, shook the tech world. DeepSeek’s chatbot became the most downloaded free app on Apple’s US App Store, beating OpenAI’s ChatGPT.
This sudden rise has sparked concern among US tech giants, causing their stocks to plummet. Chip maker Nvidia suffered a significant loss of nearly 17%, which marked the biggest one-day loss in market value on Wall Street, totaling around $589 billion.
DeepSeek claims its AI model was developed at a lower cost than its competitors, including OpenAI, which uses more expensive Nvidia chips. President Trump sees this as a wake-up call for US industries to focus on competing and winning. He believes this could be a positive development for US tech giants, encouraging them to find cost-effective solutions.