Trump Calls DeepSeek A 'Wake-Up Call'; Explained In 10 Points Why This Chinese App Is A Big Deal

US President Donald Trump has also joined in the phenomenon that a newborn Chinese AI app, DeekSeek triggered in the US market. While travelling to Florida, Trump told media that he sees the low-cost AI company DeepSeek as a positive development, and the little-known Chinese app is a wake-up call for US tech companies. DeepSeek's popularity and outperformance against ChatGPT created havoc of panic and an intense market rout on Wall Street due to sharp selloffs in US tech biggies with Nvidia losing a $600 billion market cap.

Trump said the DeepSeek app is a very positive development for the overall AI sector because instead of spending billions and billions on an application, DeepSeek showcases an example of how to spend less and create powerful solutions. Trump hopes for similar solutions from the US industry.

The 47th US President further added that the release of DeepSeek should be considered as a 'wake up' call for US industries. Adding he stated that US companies need to be laser-focused on competition.

This Chinese artificial intelligence company was founded in 2023. Headquartered in Hangzhou, Zhejiang, China, DeepSeek released its first AI model, R1 on January 10th, which a few days later by January 27th had surpassed ChatGPT as the most-downloaded free app on the iOS App Store in the United States.

DeepSeek's accomplishment against giants like Nvidia and ChatGPT among other established rivals, is described as "upending AI" and constituting "the first shot at what is emerging as a global AI space race".

Apart from rivaling Open AI's Model o1 with its R1 application, DeepSeek has also launched V3 which it described to achieve a significant breakthrough in inference speed over previous models. On its website, DeepSeek said, that VR also tops the leaderboard among open-source models and rivals the most advanced closed-source models globally.

Explained in 10 points why DeepSeek is a threat to US tech companies like Nvidia, OpenAi and other AI giants:

Through its X handler, The AI Colony said, "It's only been a few days since China Deepseek R1 dropped & it's INSANE! SPOILER: ChatGPT is now behind."

The AI Colony highlighted ten very interesting points about DeepSeek's R1:

1. DeepSeek R1 thinks in real time.

2. Build a browser agent without code.

3. Code any game from different languages.

4. DeepSeek R1 1.5B runs on iPhone 16, AI reasoning model in your pocket.

5. DeepSeek R1 creates a bouncing yellow ball inside a Rhombicosidodecahedron.

6. Built Perplexity but with DeepSeek reasoner model in about an hour without code.

7. Create RAT (Retrieval Augmented Thinking), an enhanced version of RAG with structured reasoning and knowledge retrieval.

8. DeepSeek R1 is 100% Opensource and 96.4% cheaper than OpenAI o1 while delivering similar performance.

9. Reason through complex medical questions.

10. Extract JUST the reasoning from deepseek-reasoner.

DeepSeek has made its generative artificial intelligence chatbot open source, meaning its code is freely available for use, modification, and viewing; this includes permission to access and utilize the source code and design documents for building purposes. The company rigorously recruits young A.I. researchers from top Chinese universities, and hires from outside the computer science field to diversify its models' knowledge and abilities, as per Wikipedia.