President Donald Trump has urged U.S. technology firms to treat the meteoric rise of Chinese AI app DeepSeek as a “wake-up call” for bolstering their competitiveness in the artificial intelligence sector. Speaking during a trip to Florida, Trump expressed confidence in American tech companies’ ability to maintain dominance but acknowledged the challenge posed by DeepSeek, a low-cost AI assistant that recently soared to the top of Apple’s app store rankings.

“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,” Trump stated. He described the app’s development at significantly lower costs than U.S. counterparts as “a positive development” that could lead to more efficient solutions in the field of AI.

Rising Concerns in the U.S. Tech Sector

DeepSeek’s performance has raised alarms within the U.S. tech sector and stock markets. The app reportedly outperformed AI models from industry leaders such as Meta and OpenAI, all while being developed by a lesser-known Chinese startup. Its success has reignited debates over the U.S.’s AI investment strategies and the effectiveness of existing export controls on high-performance semiconductors, which DeepSeek’s developers claim to have navigated.

Rep. John Moolenaar, chair of the House Select Committee on China, called for urgent measures to counter DeepSeek’s influence. “DeepSeek — a new AI model controlled by the Chinese Communist Party — openly erases the CCP’s history of atrocities and oppression,” Moolenaar alleged, citing concerns over censorship within the app. He advocated for stronger export controls on technologies critical to DeepSeek’s infrastructure.

Broader Implications for AI Development

The rise of DeepSeek comes amid heightened scrutiny of Chinese apps in the U.S. market. This follows controversies surrounding apps like TikTok, which faced temporary bans due to national security concerns. DeepSeek’s success has drawn comparisons to TikTok’s earlier rise and added to fears of China gaining an edge in the AI race.

David Sacks, Trump’s White House AI and cryptocurrency czar, highlighted the competitive nature of the global AI landscape. “DeepSeek’s success shows that the AI race will be very competitive,” Sacks noted, while criticizing previous Biden administration policies for “hamstringing” American tech firms.

Sen. Mark Warner defended current export controls but conceded that additional measures might be necessary. “What’s in the public record reveals that the PRC continues to prioritize advancements in AI,” Warner stated. “Export control alone will not stymie their efforts, though it remains a crucial component.”

Trump Administration’s Stance

Last week, Trump signed an executive order reversing certain Biden-era AI policies, which he claimed hindered industry progress. While no immediate policy response to DeepSeek’s rise has been announced, Trump’s remarks indicate a focus on ensuring the U.S. remains a leader in AI innovation.

House Speaker Mike Johnson called DeepSeek “a serious threat” and criticized China for its trade practices and intellectual property theft. “They’re now trying to get a leg up on us in AI,” Johnson stated, emphasizing the urgency for America to counter these challenges effectively.

As debates over policy and regulation unfold, DeepSeek’s rapid ascent has sparked a broader conversation about the future of AI development and the measures needed to secure America’s technological leadership.