The Blubber

U.S. Officials Reviewing National Security Implications of Chinese AI App DeepSeek

U.S. officials are currently evaluating the national security risks posed by the Chinese artificial intelligence app DeepSeek, according to White House press secretary Karoline Leavitt on Tuesday.

Leavitt confirmed that the National Security Council is reviewing the app's potential impacts, calling it a "wake-up call" for the American AI industry. She emphasized that the White House is committed to ensuring the dominance of American AI.

Global Stock Concerns Sparked by DeepSeek's Emergence

The announcement of DeepSeek's emergence has caused global investors to sell off technology stocks, with concerns that the low-cost Chinese AI model could challenge the market dominance of U.S.-based AI giants like OpenAI and Google (Alphabet).

While Leavitt did not provide specifics about the review's scope or any potential actions from the White House, the situation is garnering significant attention.

Previous U.S. Actions Against Chinese AI Development

During his presidency, Joe Biden imposed broad export restrictions on AI chips and related equipment, aiming to hinder China's AI development.

Donald Trump, speaking on Monday, stated that the launch of DeepSeek AI should push U.S. companies to innovate further and acknowledged that Chinese companies had developed a more affordable and efficient method of creating AI technology.

"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 remarked.

Trump also noted that Chinese leaders had previously praised U.S. scientists, suggesting that if China could innovate with cheaper AI, U.S. companies would eventually follow suit with their own cost-effective solutions.

"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," Trump said. "So instead of spending billions and billions, you'll spend less, and you'll come up with, hopefully, the same solution."

U.S. Efforts to Limit AI Chip Exports to China

The Commerce Department, led by Trump's appointee Howard Lutnick, has been at the forefront of efforts to restrict AI chip exports to China, particularly from U.S. tech companies like Nvidia and Advanced Micro Devices. Lutnick is expected to appear in his nomination hearing on Wednesday.