By Reuters and published by CNA
Washington – US officials are looking at the national security implications of the Chinese artificial intelligence app DeepSeek, White House press secretary Karoline Leavitt said on Tuesday (Jan. 28).
The National Security Council is reviewing the implications of the app, she said. “This is a wakeup call to the American AI industry,” Leavitt said, adding the White House was working to “ensure American AI dominance”
Investors sold technology stocks across the globe on Monday over concerns the emergence of a low-cost Chinese artificial intelligence model would threaten the market dominance of US-based AI leaders.
However US stocks and shares in chip-making giant Nvidia on Tuesday (Jan. 28) clawed back some of their losses following a steep sell-off a day earlier triggered by the sudden success of Chinese artificial intelligence firm DeepSeek.
American tech shares tanked on Monday, with Nvidia tumbling almost 17 percent, after China’s DeepSeek unveiled its R1 chatbot, which it claims can match the capacity of top US AI products for a fraction of their costs.
Nvidia, which designs chips used in AI applications, clawed back gains of 8.9 percent on Tuesday, leaving it well below last week’s levels.
All three major indices on Wall Street finished higher, with the Nasdaq Composite rising 2 percent buoyed by a rise in tech stocks, reversing some of its losses from Monday.
Leavitt did not indicate that the White House would take any action after its review.
President Donald Trump on Monday said the Chinese app should act as a spur for American companies and said it was good that companies in China have come up with a cheaper, faster method of artificial intelligence.
“The release of DeepSeek, AI from a Chinese company should be a wakeup call for our industries that we need to be laser-focused on competing to win,” Trump said.
Trump said Chinese leaders had told him the US had the world’s most brilliant scientists, and he indicated that if Chinese industry could come up with cheaper AI technology, US companies would follow.
“We always have ideas. We’re always first. So I would say that’s a positive that could be very much a positive development. So instead of spending billions and billions, you’ll spend less, and you’ll come up with, hopefully, the same solution,” Trump said.
CAPTIONS:
Top: The deepseek logo, a keyboard, and robot hands are seen in this illustration taken January 27, 2025. Photo: Reuters/Dado Ruvic/Illustration and published by CNA
Front Page: The Icon for the smartphone app DeepSeek is seen on a smartphone screen in Beijing, on Tuesday, Jan. 28, 2025. Photo: AP /Andy Wong and published by CNA
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