From Financial Modeling Prep: 2025-01-28 05:38:38

U.S. President Trump praises Chinese AI startup DeepSeek for its cost-efficient AI model, calling it a potential catalyst for U.S. innovation. DeepSeek claims to deliver high-performance AI at reduced costs, sparking optimism from Trump at a Republican event in Miami.

To bolster U.S. AI competitiveness, Trump signs an executive order scaling back restrictions on AI development and announces a $500 billion private investment initiative led by OpenAI and Softbank. The initiative aims to expand AI infrastructure across the U.S. and maintain American leadership in AI through friendlier regulations and public-private partnerships.

DeepSeek’s R1 model disrupts the global AI sector by offering high performance at a fraction of the cost. The model challenges the high-spending approach of U.S. AI giants like Nvidia, causing a nearly 17% drop in the company’s stock amid concerns over AI investments’ sustainability.

While Trump sees DeepSeek’s breakthrough as an opportunity, analysts warn of increased competition for U.S. companies relying on expensive AI infrastructure. Investors tracking AI sector trends may benefit from tools like the Advanced DCF API for valuation adjustments and the Financial Growth API for monitoring AI-related expenditure growth.

Trump’s optimistic view of DeepSeek’s advancements reflects his aim to secure America’s AI dominance. The success of his policies and investments will depend on U.S. tech companies’ ability to innovate and adapt to the evolving global AI landscape.



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