DeepSeek: Trump warns of 'wake-up call' for US tech firms
Published On Jan 28, 2025, 12:38 AM
President Donald Trump referred to Chinese AI company DeepSeek's emergence as a significant development for the US tech industry. DeepSeek's AI model, R1, was launched at a fraction of the cost of rival technologies, raising concerns about America’s position in AI. Trump's comments suggested that the cheaper alternatives could be beneficial for the US, although concerns over cybersecurity have been raised. Major tech firms, particularly Nvidia, experienced stock declines as market reactions followed the announcement, while Asian markets were also affected.
Stock Forecasts
NVDA
Negative
The concerns over AI competition and the potential disruption in the industry may continue to weigh on stocks of major tech companies like Nvidia. As the market processes the implications of DeepSeek's cost-effective alternative, Nvidia's stock could remain under pressure.
ARKK
Neutral
The overall growth potential of AI technologies as DeepSeek's model may encourage broader adoption across various sectors, potentially benefiting the broader market. However, immediate concerns about market dominance will likely offset this optimism.
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