Like investors, the Trump administration appears to have been blindsided by buzzy Chinese AI company DeepSeek and its extraordinarily cheap models, which threaten to upend the economics of the U.S.-dominated sector.
On Monday, as DeepSeek’s recently introduced innovations wiped over $1 trillion off the value of U.S. stocks, and just days after announcing a privately funded $500 billion AI infrastructure push, President Donald Trump said DeepSeek’s rise was “a wake-up call for our industries that we should be laser-focused on competing to win.”
