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U.S. President Donald Trump has described the advanced AI technology from Chinese startup DeepSeek as a "wakeup call" for American companies.

Speaking in Florida on Monday, Trump highlighted the significance of DeepSeek's cheaper and faster AI methods, suggesting they could serve as a catalyst for U.S. tech industries to enhance their competitive edge.

"The release of DeepSeek, AI from a Chinese company should be a wakeup call for our industries that we need to be laser-focused on competing to win," Trump remarked, underscoring the urgency for American businesses to step up their game in the global AI race.

The introduction of this low-cost AI model from China led to a significant sell-off in technology stocks worldwide on Monday, as investors worried about the potential disruption to the established dominance of U.S.-based AI companies.

Trump expressed a positive outlook on the development, stating, "I've been reading about China and some of the companies in China, one in particular coming up with a faster method of AI and much less expensive method, and that's good because you don't have to spend as much money. I view that as a positive, as an asset."

He further elaborated that this could benefit U.S. companies by reducing the financial burden of AI development while achieving similar outcomes. "I view that as a positive because you'll be doing that too, so you won't be spending as much, and you'll get the same result, hopefully," he added.

Trump also shared insights from his conversations with Chinese leaders, who reportedly acknowledged the U.S.'s lead in scientific talent. He suggested that the U.S. could leverage its position to adapt and innovate based on these new, cost-effective technologies from China.

"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. So instead of spending billions and billions, you'll spend less, and you'll come up with, hopefully, the same solution," Trump concluded, painting a picture of a future where American innovation could thrive by learning from global advancements in AI technology.

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