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DeepSeek's Rise Sparks Major Concerns for U.S. Tech Industry

DeepSeek's emergence as a competitive AI model has led to significant stock declines for major U.S. tech firms, prompting responses from President Trump and industry analysts.

Overview

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Chinese AI startup DeepSeek has drastically disrupted the U.S. tech landscape, becoming the most downloaded app after launching its R1 AI model at just $6 million. U.S. tech giants, particularly Nvidia, experienced historic stock declines amid fears over AI competitiveness and investments. President Trump called DeepSeek's rise a 'wake-up call,' while industry experts raised questions about the sustainability of current AI strategies. The model's claims of performance parity with expensive rivals, combined with cost-effective development, highlight a potential shift in the AI arms race between the U.S. and China.

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DeepSeek: Trump warns of 'wake-up call' for US tech firms
BBC NewsBBC News·5M·
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Silicon Valley leaders react to new rival DeepSeek
Business InsiderBusiness Insider·5M·
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Tech stocks drop amid rise of China’s DeepSeek AI model
The HillThe Hill·5M·
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A new AI assistant from China has Silicon Valley talking
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History

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  • 5M
    CNBC logo
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    ARS Technica logo
    4 articles
  • 5M
    New York Post logo
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    The Guardian logo
    6 articles