Trump believes DeepSeek saves money for U.S. tech giants
U.S. plans stricter export controls on AI chips to China
On Friday, U.S. President Donald Trump and Nvidia CEO Jensen Huang met at the White House to discuss the rise of China's AI company, DeepSeek, and the tightening of artificial intelligence (AI) chip exports.
The meeting took place as the U.S. government plans to implement further restrictions on advanced AI chip exports this spring. These measures aim to preserve cutting-edge computing power within the U.S. and its allies while curbing China's access, reports Reuters.
Trump kept details of the discussion under wraps but expressed admiration for Huang, calling him a "gentleman." “I can’t say what’s gonna happen. We had a meeting. It was a good meeting,” Trump commented.
Nvidia later confirmed that the conversation centred around strengthening U.S. technology and AI leadership, with Huang and the President discussing the importance of maintaining an edge in these fields.
DeepSeek's Disruption and U.S. Concerns
The meeting occurred shortly after DeepSeek, a Chinese AI firm, shocked the tech world with the launch of its AI assistant, which the company claims uses less data at a significantly lower cost than its U.S. counterparts.
The app quickly became the most downloaded on the Apple App Store, triggering concerns about China's rapidly advancing AI capabilities. As a result, U.S. tech stocks, particularly those of Nvidia, saw massive losses—Nvidia's shares dropped by 17%.
Sources familiar with the meeting suggested that Trump views DeepSeek’s rise as a signal that U.S. companies might not need to invest heavily in creating low-cost AI alternatives. However, concerns are growing that China could soon catch up with the U.S. in AI development, threatening the country's leadership in this critical sector.
Tightening AI Chip Exports to China
In response to these developments, the U.S. administration is contemplating stricter measures on the export of Nvidia's AI chips to China, particularly the H20 chips. These chips, which are capable of running AI software, were developed to comply with previous U.S. export restrictions under the Biden administration.
Two U.S. lawmakers, Republican John Moolenaar and Democrat Raja Krishnamoorthi, have called for further restrictions on Nvidia's sales to China, with a specific focus on the H20 chips. The U.S. Commerce Department is also investigating whether DeepSeek has been using U.S.-made chips that are not authorized for shipment to China.
As the U.S. tightens its grip on AI chip exports and scrutinizes Chinese companies’ access to American technology, the growing competition between the two countries in the AI sector is expected to intensify.
The implications for global technology markets, particularly in the realm of AI, remain uncertain. With U.S. firms already feeling the effects of China's rapid advancements, the coming months could be pivotal in determining the balance of power in this emerging field.
Additionally, in a speech to supporters in Florida, U.S. President Donald Trump sharply criticized Brazil, accusing the South American nation of imposing excessively high tariffs on American products and threatening to respond with additional trade sanctions.
