Technology
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Technology
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Trump declares China's DeepSeek AI 'wake-up call'
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President Trump said DeepSeek, the Chinese startup behind a popular new artificial intelligence (AI) model, represented a “wake-up call” for American tech firms.
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© Mark Schiefelbein, Associated Press
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“The release of DeepSeek, AI from a Chinese company, should be a wake-up call for our industries that we need to be laser-focused on competing to win,” Trump told House Republicans at their annual policy retreat.
The president also suggested that the rise of the new AI model, which contributed to significant stock losses for the tech sector Monday, could be seen as a positive.
“That could be very much a positive development,” he added during the address at his National Doral resort outside Miami. “So instead of spending billions and billions, you’ll spend less and you’ll come up with, hopefully, the same solution.”
DeepSeek exploded onto the AI scene last week after releasing its R1 open-source reasoning model, which it claims performs on par with OpenAI’s models.
It surged to the top of Apple’s App Store over the weekend, overtaking OpenAI’s ChatGPT.
Most notable about the AI model, however, is how it was built. DeepSeek claims to have spent just $5.6 million and relied on a couple thousand reduced-capability chips to train its latest models.
White House press secretary Karoline Leavitt reiterated the president's comments Tuesday, while placing blame on the Biden administration for the rise of DeepSeek.
"The last administration sat on their hands and allowed China to rapidly develop this AI program," Leavitt said at the first formal briefing of the new Trump term. "President Trump believes in restoring American AI dominance."
Trump has sought to roll back "some of the onerous regulations on the AI industry" in his first days in office and appointed venture capitalist David Sacks to serve as the first White House AI and cryto czar, she noted.
The National Security Council is looking into potential national security concerns related to the AI model, Leavitt added.
Read more in a full report at TheHill.com.
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Welcome to The Hill’s Technology newsletter, we're Julia Shapero and Miranda Nazzaro — tracking the latest moves from Capitol Hill to Silicon Valley.
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How policy will be impacting the tech sector now and in the future:
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President Trump on Monday said Microsoft is one of the technology companies eyeing TikTok to keep the app in the United States amid a looming government ban. When asked if Microsoft was one of the companies in talks for the popular video-sharing app, Trump told reporters, “I would say yes.” He added that there has been “a lot of interest in TikTok” but did not expand upon the interested companies. Microsoft …
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OpenAI is launching a new version of its popular ChatGPT model that is specifically tailored to government agencies and workers as the artificial intelligence (AI) firm seeks to remain a top player in the AI space. The product, dubbed “ChatGPT Gov,” will give workers at U.S. government agencies the “most powerful version” of OpenAI’s ChatGPT Enterprise model, which currently offers users enterprise-grade security and privacy. …
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More than a dozen U.S. and Canadian Jewish groups said Tuesday they will leave the social media platform X, stating it “has become rife with toxic speech” amid Elon Musk’s changes to the popular social networking app. “More than a dozen U.S. and Canadian Jewish groups said Tuesday they will leave the social media platform X, stating it “has become rife with toxic speech,” a coalition of 15 …
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A document released Tuesday by the Vatican outlines ethical guidelines for the use of artificial intelligence and issued a warning that the technology could “undermine the foundations of society.” In the document, Pope Francis highlighted the risks associated with AI. It comes just a day after a new Chinese AI model, DeepSeek, shook up the industry. As the use and capabilities of AI technology rapidly expand, Pope Francis argued …
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Democrats take aim at Trump Commerce nominee's crypto ties
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Welcome to Crypto Corner, a new feature in The Hill's Technology newsletter focused on digital curency and its outlook in Washington.
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Sen. Elizabeth Warren (D-Mass.) is reminding the crypto industry that they still have to shake off the negative connotation some Washington policymakers have when it comes to digital asset firms.
Warren sent a letter to Trump Commerce secretary nominee Howard Lutnick on Monday, pressing him on any connections he and his firm Cantor Fitzgerald LLP have with a crypto firm that she alleged had been exploited by criminals.
In the letter shared with The Hill, she said she has "serious concern" about Lutnick's involvement and alleged support for Tether, a stablecoin giant she said had reported ties to global criminal networks.
Lutnick did not list Tether or any other crypto investments on his financial disclosure form, though Cantor Fitzgerald holds a stake in Tether, Bloomberg reported.
Lutnick has agreed to divest his holdings in Cantor Fitzgerald if he is confirmed by the Senate.
Why it matters: The crypto industry has worked over the past year to be seen as a legitimate venture after multiple scandals roiled its reputation in Washington.
And while the Trump administration appears to be ushering in a new era for the cryptocurrency industry, the federal probe into Tether puts a wrinkle in their mission
Tether has aggressively pushed back on the allegations.
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News we've flagged from the intersection of tech and other topics:
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Visa and Elon Musk's X strike online payment deal (Reuters)
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Trump says new tariffs coming soon for computer chips, semiconductors (The Washington Post)
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Branch out with other reads on The Hill:
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Stirewalt: DeepSeek sharpens AI arms race — and MAGA tensions
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The revelation that China’s DeepSeek has built a better artificial intelligence (AI) mousetrap than its much richer American counterparts set off a panic among tech investors Monday, causing the Nasdaq index to plummet. DeepSeek’s success despite Washington’s blockade on high-powered Chinese chips set off a similar freak-out among the ascendant AI barons — who just last week were in Washington cozying up to the political powers …
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Google said on Monday that it will change the name of the Gulf of Mexico to “Gulf of America” in Google Maps once it is updated in the U.S. Geographic Names System. Google Maps will also change the name of Denali in Alaska to “Mount McKinley.” “We’ve received a few questions about naming within Google Maps. We have a longstanding practice of applying name changes when they have been updated in …
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Two key stories on The Hill right now:
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State Medicaid programs across the country are reporting they’ve lost access to federal payment portals one day after President Trump announced … Read more
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President Trump’s press secretary Karoline Leavitt held her first White House briefing Tuesday, fielding questions from reporters for just more than … Read more
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Opinions related to tech submitted to The Hill:
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You're all caught up. See you tomorrow!
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Save story
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The dismissal of government inspectors general will make it difficult to root out waste and corruption.
The New York Times - 19h
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China on Monday unveiled its DeepSeek artificial intelligence, shocking the U.S. tech sector and sending chip-maker Nvidia's stock tumbling. Anna Coren reports.
CBS News - 1d
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Microsoft will report fiscal second-quarter earnings on Wednesday afternoon.
MarketWatch - 1d
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The release of Chinese AI app DeepSeek has spooked Wall Street as technology investors fear that American companies are falling behind in the race to develop super-intelligent computers.
MarketWatch - 1d
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Trump’s $500 billion AI project is smoke and mirrors — and bad economics. China’s AI thunderbolt doesn’t help.
MarketWatch - 1d
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If it turns out the moat around US tech stocks is not as deep as investors had hoped, the AI fairytale will unravel
Financial Times - 1d
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Chinese artificial intelligence (AI) startup DeepSeek is stirring up anxiety in Silicon Valley after launching a new AI model that appears to rival leading AI ventures in the U.S. for a fraction of ...
The Hill - 2d
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Watch as President Trump is sworn in to serve as the 47th president as he takes the presidential oath administered by Supreme Court Chief Justice John Roberts.
NBC News - Jan. 20
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He also said he wants to reclaim the Panama Canal
BBC News - Jan. 8
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The Hill - 1h
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Vice President Vance praised President Trump’s approach to his second term, touting the quick and broad actions of the new administration as well as the stamina of the president compared to his ...
The Hill - 1h
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A regional jet and helicopter collided near Reagan National Airport shortly before 9 p.m. local time on Wednesday evening. The Federal Aviation Agency (FAA) said that a PSA Airlines regional jet, ...
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A regional jet carrying 60 passengers and four crew members collided with a military helicopter on Wednesday night as it approached Reagan National Airport. The flight was en route from Witchita, ...
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