WORLD-AI | Trump says China’s DeepSeek AI a ‘wake up call’ for US | DeepSeek limits registrations due to cyber attack
Trump says China’s DeepSeek AI a ‘wake up call’ for US
MIAMI: US President Donald Trump said Monday the low-cost Chinese AI model DeepSeek was a “wake up call“ for US firms, after its emergence caused a rout in tech shares.
“Hopefully, 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 told a Republican congressional retreat in Miami.
But Trump said the shock could also be “positive” for Silicon Valley by forcing it to innovate more cheaply.
“I would say that could be a positive,“ Trump said. “So instead of spending billions and billions, you’ll spend less, and you’ll come up with hopefully the same solution.”
Trump’s comments came after US chip-maker Nvidia, whose semiconductors power the AI industry, led a massacre in tech stocks, losing nearly $600 billion of its market value.
The chatbot developed by DeepSeek, a startup based in the eastern Chinese city of Hangzhou, has apparently shown the ability to match the capacity of US AI pace-setters for a fraction of the investments made by American companies.
Just last week following his inauguration for a second term, Trump announced a $500 billion venture to build infrastructure for AI in the United States led by Japanese giant SoftBank and ChatGPT-maker OpenAI.
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DeepSeek limits registrations due to cyber attack
DeepSeek hit with large-scale cyberattack, says it’s limiting registrations
- DeepSeek on Monday said it would temporarily limit user registrations “due to large-scale malicious attacks” on its services.
- The Chinese AI startup recently toppled OpenAI’s ChatGPT from its title of most-downloaded free app in Apple’s App Store.
DeepSeek on Monday said it would temporarily limit user registrations “due to large-scale malicious attacks” on its services, though existing users will be able to log in as usual.
The Chinese artificial intelligence startup has generated a lot of buzz in recent weeks as a fast-growing rival to OpenAI’s ChatGPT, Google’s Gemini and other leading AI tools.
Earlier on Monday, DeepSeek took over rival OpenAI’s coveted spot as the most-downloaded free app in the U.S. on Apple’s App Store, dethroning ChatGPT for DeepSeek’s own AI Assistant. It helped inspire a significant sell-off in global tech stocks.
Buzz about the company, which was founded in 2023 and released its R1 model last week, has spread to tech analysts, investors and developers, who say that the hype — and ensuing fear of falling behind in the ever-changing AI hype cycle — may be warranted. Especially in the era of the generative AI arms race, where tech giants and startups alike are racing to ensure they don’t fall behind in a market predicted to top $1 trillion in revenue within a decade.
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DeepSeek reportedly grew out of a Chinese hedge fund’s AI research unit in April 2023 to focus on large language models and reaching artificial general intelligence, or AGI — a branch of AI that equals or surpasses human intellect on a wide range of tasks, which OpenAI and its rivals say they’re fast pursuing.
The buzz around DeepSeek especially began to spread last week, when the startup released R1, its reasoning model that rivals OpenAI’s o1. It’s open-source, meaning that any AI developer can use it, and has rocketed to the top of app stores and industry leaderboards, with users praising its performance and reasoning capabilities.
The startup’s models were notably built despite the U.S. curbing chip exports to China three times in three years. Estimates differ on exactly how much DeepSeek’s R1 costs, or how many graphics processing units went into it. Jefferies analysts estimated that a recent version had a “training cost of only US$5.6m (assuming US$2/H800 hour rental cost). That is less than 10% of the cost of Meta’s Llama.”
But regardless of the specific numbers, reports agree that the model was developed at a fraction of the cost of rival models by OpenAI, Anthropic, Google and others.
As a result, the AI sector is awash with questions, including whether the industry’s increasing number of astronomical funding rounds and billion-dollar valuations is necessary — and whether a bubble is about to burst.
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