Donald Trump Reacts to DeepSeek’s AI Market Sell-Off [Video]

President Donald Trump has called Chinese startup DeepSeek’s AI breakthrough a “wakeup call” for American industry while speaking to House Republicans at his Doral resort in Miami.

The remarks came as DeepSeek’s cost-efficient AI development triggered a massive sell-off in U.S. technology stocks.

Newsweek reached out to a spokesperson for Trump via email on Monday for comment.

Why It Matters

The sell-off in U.S. tech stocks was immediate and severe, stemming from concerns that DeepSeek, and thus China, has caught up with American companies at the forefront of generative AI—at a fraction of the cost.

Last year, Anthropic CEO Dario Amodei revealed training some AI models could cost up to $1 billion. DeepSeek reportedly built its LLM for less than $6 million, compared to OpenAI‘s estimated $100 million for Sam Altman’s GPT-4.

What To Know

The market impact was historic, with Nvidia’s stock falling 17 percent, erasing nearly $600 billion in market capitalization—the largest one-day loss …