By The AI War: Why Trump is Worried About DeepSeek’s Rise
DeepSeek’s Arrival Shakes Up the AI Race
The artificial intelligence (AI) race has taken a dramatic turn with the arrival of DeepSeek, a Chinese AI company that has quickly become a serious competitor to major U.S. tech firms. Unlike OpenAI, which has been developing AI for ten years and received $6.6 billion in funding, DeepSeek was founded just two years ago, has only 200 employees, and was built with less than $10 million. Despite this, its AI model is already competing with ChatGPT and other advanced AI systems.
This unexpected success is a wake-up call for the U.S. tech industry and political leaders like Donald Trump, who have long warned about China’s rapid technological progress. It also raises serious questions about whether the U.S. strategy of restricting China’s access to advanced computer chips is actually effective.
Why DeepSeek’s Rise is a Problem for the U.S.
For years, the U.S. has relied on export bans on high-end Nvidia chips to slow down China’s AI advancements. The assumption was that without the latest chips, Chinese companies would not be able to compete with Silicon Valley’s AI giants.
However, DeepSeek’s engineers proved this assumption wrong. They used older, less advanced Nvidia chips to train their model, showing that top-tier AI can still be built with limited resources. This means that China is finding new ways to work around U.S. restrictions, making export bans far less effective than expected.
This situation is a major concern for the U.S. government because AI is not just a business competition—it has military, cybersecurity, and economic implications. If Chinese companies can develop powerful AI models on their own, the U.S. risks losing its technological advantage, which could shift global power away from Washington and towards Beijing.
Trump’s Concerns: AI, National Security, and Economic Power
Donald Trump has always positioned himself as a strong opponent of China’s rise in technology. He has repeatedly warned that if the U.S. does not take stronger action, China could overtake America in AI development, giving Beijing an edge in national security, defense, and the global economy.
DeepSeek’s success has already had a direct impact on the U.S. stock market. Following the news of its AI breakthrough, major tech stocks like Microsoft and Google saw their prices drop. This shows that investors are worried about U.S. tech dominance, a concern that Trump and other American leaders have long shared.
To counter China’s AI advancements, Trump and his supporters may push for even stricter trade policies and greater investment in Silicon Valley. Some experts argue that instead of focusing on blocking China, the U.S. should increase funding for its own AI research to ensure it remains the global leader.
What This Means for Sri Lanka and the AI Industry
DeepSeek’s rise is not just a U.S.-China issue—it has global implications, including for Sri Lanka. As AI becomes more advanced and accessible, Sri Lankan businesses, universities, and tech startups will have new opportunities to adopt cutting-edge AI technology.However, the global AI race also means that countries like Sri Lanka must be prepared for rapid changes in industries such as finance, healthcare, and cybersecurity. With China proving that AI can be developed at a lower cost, Sri Lanka may have new opportunities to collaborate with emerging AI leaders, rather than relying only on Western technology.
The AI War is Just Beginning
DeepSeek has changed the rules of the AI race. It has proven that big budgets and the latest hardware are not the only factors needed to develop powerful AI. The U.S. is now forced to rethink its AI strategy, while China continues to advance despite restrictions.
For Trump and other American leaders, this is a major warning sign that the U.S. is losing its tech dominance. Whether the U.S. can regain its lead or whether China is on the path to AI supremacy remains to be seen. However, one thing is clear: the global AI war is far from over, and its impact will be felt worldwide, including in Sri Lanka.
________________________________________
Sources:
• Al Jazeera: China’s AI Breakthrough
• The Kobeissi Letter: AI Industry Analysis
• New York Times: AI Competition Heats Up
• TechCrunch: AI and Global Politics
