Updated 10:06 IST, January 28th 2025
'Wake Up Call For US': Trump Sounds Alarm Over China's DeepSeek AI Chatbot
Investors expressed concerns that DeepSeek's rise could challenge US-based AI companies, particularly due to its low-cost model & efficient use of resources.

Florida: US President Donald Trump , during a speech in Florida, warned about China's advancements in artificial intelligence as Chinese tech firm DeepSeek’s AI app became the most downloaded free app on Apple ’s iPhone store on Monday.
"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.
Global Tech Stocks Slide
Trump’s remarks came as technology shares globally fell on Monday. Investors expressed concerns that DeepSeek's rise could challenge US-based AI companies, particularly due to its low-cost model and efficient use of resources.
Despite warning of the competition, Trump remained optimistic about US innovation. He pointed out that China’s low-cost AI methods could benefit the global industry, including the US.
"I've been reading about China, and some companies there are coming up with faster, less expensive AI methods, and that's good. You won’t have to spend as much money," Trump said.
He added, "Chinese leaders have told me the United States has the most brilliant scientists in the world. If they can develop cheaper technology, our companies can too. We're always first when it comes to ideas."
Trump highlighted the need for US companies to adapt and innovate, saying, "Instead of spending billions, you'll spend less and achieve the same results, hopefully."
DeepSeek Becomes No. 1 Downloaded Free App on Apple's Iphone Store
The chatbot gained more visibility earlier this year after being listed on Apple and Google app stores. By Monday, it had climbed to the top of Apple's free app downloads chart, sparking debates about competition between China and the US in the AI sector.
DeepSeek’s rapid rise has raised concerns among US tech experts, who fear that the Chinese startup may be catching up with American leaders in generative AI technology, and that too at a significantly lower cost.
DeepSeek vs ChatGPT AI Battle Heats Up
DeepSeek has gained praise from global investors, including those in the US, for its ability to deliver high-performing AI models while significantly reducing operational costs. The company has marketed its platform as a viable alternative to top US AI models, offering a blend of high accuracy and affordability.
Chinese tech firm DeepSeek is emerging as a formidable competitor to US-based AI platforms like OpenAI’s ChatGPT and Meta AI, claiming to deliver more cost-effective and efficient artificial intelligence solutions.
ChatGPT, developed by OpenAI, has dominated the AI landscape with its cutting-edge natural language processing capabilities. However, DeepSeek claims its models can outperform ChatGPT in terms of efficiency and scalability. Unlike OpenAI, which relies on expensive infrastructure, DeepSeek has optimized its models to use fewer resources while maintaining performance.
Founded in 2023 in Hangzhou, China, DeepSeek launched its first large language AI model the same year. Its latest AI assistant has now positioned the company as a key player in the global AI landscape, further intensifying the AI race between the US and China.
DeepSeek is an advanced AI platform specializing in natural language processing, data analysis, and machine learning applications. Its flagship models, DeepSeek-V3 and DeepSeek-R1, are designed to be efficient, accurate, and capable of handling complex tasks at a fraction of the cost compared to its US counterparts.
Published 07:58 IST, January 28th 2025