Jan. 27, 6:30 p.m. EST President Donald Trump said at a House Republican retreat that the launch of the AI model was “a positive development” but should be considered a “wake-up” call for U.S. industries, lauding the move for what he hoped would usher in a future of “coming up with a faster method of AI, and much less expensive method.”

Silicon Valley and Washington leaders said the app shows China can challenge the U.S. The Nasdaq lost 3 percent and chipmaker Nvidia shed $589 billion in market capitalization.

DeepSeek, a Chinese artificial intelligence startup, has recently captured significant attention by surpassing ChatGPT on Apple Inc.’s App Store download charts. The company’s AI assistant reached the number one position shortly after the release of its latest open-source AI model,