Chinese AI company **DeepSeek** has made a significant impact in the tech industry, reminiscent of the historic launch of **ChatGPT**. Even ex-U.S. President Donald Trump has commented on the growing attention the firm is receiving.

“The emergence of DeepSeek, an AI from a Chinese firm, should serve as a wake-up call for our industries to maintain intense focus on competing effectively,” Trump stated during a recent address to House Republicans in Miami.

Trump’s comments came after a volatile day on the **U.S. stock market**, during which **Nvidia** experienced a staggering market capitalization decrease of over $500 billion. This downturn was fueled by fears that DeepSeek’s cutting-edge and efficient AI technology might diminish the demand for Nvidia’s hardware.

At the heart of the enthusiasm is **DeepSeek R1**, the latest large language model (LLM) from the company. This model has surpassed rivals, including OpenAI’s most sophisticated systems, in benchmark evaluations. DeepSeek R1 not only demands less computing power for training but is also more economically viable than OpenAI’s products. Most notably, DeepSeek R1 is open-source, enabling technology firms to utilize, adapt, and modify it freely to meet their requirements. For a more comprehensive examination of the technology, visit Mashable’s **in-depth overview of DeepSeek R1**.

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[DeepSeek could dethrone OpenAI’s ChatGPT. Here’s why](https://mashable.com/article/china-deepseek-dethrone-openai)

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While many details regarding DeepSeek R1 and its parent organization remain murky, U.S. tech executives have quickly recognized its promise. At the World Economic Forum in Davos, Switzerland, Microsoft’s CEO **Satya Nadella** called DeepSeek R1 “super impressive.” Likewise, notable investor **Marc Andreessen** praised it as “one of the most amazing and impressive breakthroughs” he has ever witnessed.

The swift influence of DeepSeek on the U.S. stock market has raised questions about how the Trump administration might react. Some have speculated about the potential for an **outright ban**, similar to the administration’s strategy with TikTok. However, at this moment, Trump seems to regard DeepSeek as a form of healthy competition rather than a direct menace to American businesses.

As the narrative progresses, DeepSeek’s ascent may signify a crucial juncture in the global AI competition, bearing significant consequences for both the technology sector and international relations.