America’s artificial intelligence industry has been dealt a “wake-up call” by DeepSeek’s cheaper and more efficient bot, Donald Trump has said.
Following a global tech sector sell-off on Monday, the President reassured the US would remain dominant in the AI space and that DeepSeek’s development could be a positive.
“If you could do it cheaper [and] get to the same end result. I think that's a good thing for us,” he told reporters on board Air Force One.
Nvidia Corp (NASDAQ:NVDA, ETR:NVD) had been among those to get hammered as news broke of the growing popularity of DeepSeek’s model, which was released last week.
Shares shed 16.9% over the day, equating to almost US$600 billion of its market capitalisation, as jitters arose over the relevance of so-far dominant players.
DeepSeek’s open-source model was said to have been trained for roughly US$6 million, which, though disputed, would compare to billions spent by rivals.