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Donald Trump thinks the Chinese startup DeepSeek, which claims it has a technical advantage over US rivals, should be “a wakeup call” for American AI firms.

DeepSeek says its artificial intelligence models are comparable with those from US giants, like OpenAI which is behind ChatGPT and Google’s Gemini, but potentially a fraction of the cost.

That has triggered a fall in various US shares, especially chipmaker Nvidia which registered a record one-day loss for any company on Wall Street.

But the US president believes the success of the Chinese firm could be helpful to America’s AI aspirations.

“The release of DeepSeek, AI from a Chinese company should be a wakeup call for our industries that we need to be laser-focused on competing to win,” Mr Trump said in Florida.

The smartphone apps DeepSeek page is seen on a smartphone screen in Beijing, Tuesday, Jan. 28, 2025. (AP Photo/Andy Wong)
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Sam Altman, CEO of OpenAI, has promised to outperform rival firm DeepSeek. Pic: AP

He pointed to DeepSeek’s ability to use fewer computing resources. “I view that as a positive, as an asset… you won’t be spending as much, and you’ll get the same result, hopefully,” he added.

On Monday, the DeepSeek assistant had surpassed ChatGPT in downloads from Apple’s app store.

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OpenAI CEO Sam Altman has given his rival some acknowledgement in a post on X, reacting to DeepSeek’s R1 “reasoning” model – a core part of the AI technology which answers questions.

“DeepSeek’s r1 is an impressive model, particularly around what they’re able to deliver for the price,” he wrote.

But Mr Altman was also defiant: “We will obviously deliver much better models and also it’s legit invigorating to have a new competitor! we will pull up some releases.”

What is DeepSeek?

DeepSeek is a startup founded in 2023 in Hangzhou, China.

Its CEO Liang Wenfeng previously co-founded one of China’s top hedge funds, High-Flyer, which focuses on AI-driven quantitative trading.

By 2022, it had created a cluster of 10,000 of Nvidia’s high-performance chips which are used to build and run AI systems. The US then restricted sales of those chips to China.

DeepSeek said recent AI models were built with Nvidia’s lower-performing chips, which are not banned in China – suggesting cutting-edge technology might not be critical for AI development.

In January 2024 it released R1, a new AI model which it claimed was on par with similar models from US companies, but is cheaper to use depending on the task.

Since DeepSeek’s chatbot became available as a mobile app it has surpassed rival ChatGPT in downloads from Apple’s app store.

There have been concerns DeepSeek could undermine the potentially $500bn (£401bn) AI investment by OpenAI, Oracle and SoftBank in Stargate which Mr Trump announced last week at the White House.

That project essentially aims to build vastly more computing power to boost AI development.

But while addressing Republicans in Miami on Monday, Mr Trump remained upbeat. He claimed that Chinese leaders had told him the US had the most brilliant scientists in the world.

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Read more:
AI now a contest between superpowers
PM: AI changing ‘quicker than we think’

He indicated that if Chinese industry could come up with cheaper AI technology, US companies would follow.

“We always have the ideas. We’re always first. So I would say that’s a positive that could be very much a positive development.

“So instead of spending billions and billions, you’ll spend less, and you’ll come up with, hopefully, the same solution,” Mr Trump said.

The intense attention on the Chinese firm has not all been good news though. It reported suffering “large-scale malicious attacks” on its services.

The company said it was hit by a cyber attack on Monday which disrupted users’ ability to register on the site.

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Anti-Trump protests sweep America for the second time in weeks

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Anti-Trump protests sweep America for the second time in weeks

Anti-Trump protests took place across America on Saturday, with demonstrators decrying the administration’s immigration crackdown and mass firings at government agencies. 

Events ranged from small local marches to a rally in front of the White House and a demonstration at a Massachusetts commemoration of the start of the Revolutionary War 250 years ago.

Thomas Bassford, 80, was at the battle reenactment with his two grandsons, as well as his partner and daughter.

He said: “This is a very perilous time in America for liberty. I wanted the boys to learn about the origins of this country and that sometimes we have to fight for freedom.”

At events across the country, people carried banners with slogans including “Trump fascist regime must go now!”, “No fear, no hate, no ICE in our state,” and “Fight fiercely, Harvard, fight,” referencing the university’s recent refusal to hand over much of its control to the government.

Some signs name-checked Kilmar Abrego Garcia, a Salvadorian citizen living in Maryland, who the Justice Department admits was mistakenly deported to his home country.

Read more: Donald Trump’s deportations explained

Pic: AP
Image:
Pic: AP

People waved US flags, some of them held upside down to signal distress. In San Francisco, hundreds of people spelt out “Impeach & Remove” on a beach, also with an inverted US flag.

People walked through downtown Anchorage in Alaska with handmade signs listing reasons why they were demonstrating, including one that read: “No sign is BIG enough to list ALL of the reasons I’m here!”

Pic: AP
Image:
Pic: AP


Protests also took place outside Tesla car dealerships against the role Elon Musk ahas played in downsizing the federal government as de facto head of the Department of Government Efficiency (DOGE).

The protests come just two weeks after similar nationwide demonstrations.

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Organisers are opposing what they call Mr Trump’s civil rights violations and constitutional violations, including efforts to deport scores of immigrants and to scale back the federal government by firing thousands of government workers and effectively shuttering entire agencies.

The Trump administration, among other things, has moved to shutter Social Security Administration field offices, cut funding for government health programs and scale back protections for transgender people.

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Day 91: Q&A – deportations, dollar bills and MAGA hats

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Day 91: Q&A - deportations, dollar bills and MAGA hats

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On Day 91, our US correspondents James Matthews and David Blevins tackle listeners’ questions.

Is Trump’s El Salvador deportation plan good business? Could President Trump put his face on a dollar bill? And are MAGA hats made in China?

If you’ve got a question you’d like the TRUMP100 team to answer, you can email it to trump100@sky.uk.

Don’t forget, you can also watch all episodes on our YouTube channel.

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JD Vance has ‘quick and private’ meeting with the Pope during visit to Rome

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JD Vance has 'quick and private' meeting with the Pope during visit to Rome

US vice president JD Vance has met with Pope Francis.

The “quick and private” meeting took place at the Pope’s residence, Casa Santa Marta, in Vatican City, sources told Sky News.

The meeting came amid tensions between the Vatican and the Trump administration over the US president’s crackdown on migrants and cuts to international aid.

No further details have been released on the meeting between the vice president and the Pope, who has been recovering following weeks in hospital with double pneumonia.

Mr Vance, who is in Rome with his family, also met with the Vatican’s number two, Cardinal Pietro Parolin, and the foreign minister, Archbishop Paul Gallagher.

The Vatican said there had been “an exchange of opinions” over international conflicts, migrants and prisoners.

According to a statement, the two sides had “cordial talks” and the Vatican expressed satisfaction with the Trump administration’s commitment to protecting freedom of religion and conscience.

“There was an exchange of opinions on the international situation, especially regarding countries affected by war, political tensions and difficult humanitarian situations, with particular attention to migrants, refugees and prisoners,” the statement said.

Francis has previously called the Trump administration’s deportation plans a “disgrace”.

Read more from Sky News:
US VP meets Italian Prime Minister Giorgia Meloni

Trump: Putin not playing me – but I might give up on peace talks

Mr Vance, who became Catholic in 2019, has cited medieval-era Catholic teaching to justify the immigration crackdown.

The pope rebutted the theological concept Mr Vance used to defend the crackdown in an unusual open letter to the US
Catholic bishops about the Trump administration in February, and called Mr Trump’s plan a “major crisis” for the US.

“What is built on the basis of force, and not on the truth about the equal dignity of every human being, begins badly and
will end badly,” the Pope said in the letter.

Mr Vance has acknowledged Francis’s criticism but said he would continue to defend his views. During an appearance in late February at the National Catholic Prayer Breakfast in Washington, he did not address the issue specifically but called himself a “baby Catholic” and acknowledged there were “things about the faith that I don’t know”.

While he had criticised Francis on social media in the past, recently he has posted prayers for the pontiff’s recovery.

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