Why AI DeepSeek is 'in the sights' of the Trump administration

The US will restrict the company from buying Nvidia’s AI chips and potentially ban Americans from accessing the company’s AI services, part of the Trump administration’s efforts to compete with China in AI.

Months after DeepSeek sent shockwaves through Silicon Valley and Wall Street, U.S. officials appear to be weighing a number of options to limit China’s access to technology and consumers.

What makes DeepSeek most amazing is that this AI model only cost $5.6 million to build and operate. (Photo: Techcrunch)

The Trump administration on Tuesday tightened restrictions on U.S. company Nvidia selling AI chips to China, expanding regulations set by the Biden administration. DeepSeek, a Chinese AI company, is gaining popularity with U.S. AI developers thanks to its competitive pricing, forcing Silicon Valley companies to cut prices on their advanced AI models.

However, there are still doubts about how DeepSeek created its competing AI models. The US company OpenAI accused DeepSeek of illegally using its models, violating its usage rules.

DeepSeek was founded in 2023 by Liang Wenfeng, co-founder of AI investment fund High Flyer. The company began developing DeepSeek in April 2023, before releasing its R1 inference model on January 20.

US President Donald Trump.

Earlier in January, President Donald Trump said the sudden rise of China's DeepSeek AI app " should be a wake-up call " for U.S. tech companies, as the meteoric rise in popularity of another Chinese app raised new questions for the administration and congressional leaders.

Hien Phan (Source: Techcrunch)

Source: https://vtcnews.vn/ly-do-ai-deepseek-lot-tam-ngam-cua-chinh-quyen-trump-ar938168.html