U.S. officials are assessing the national security implications of the Chinese artificial intelligence app DeepSeek, as reported by White House press secretary Karoline Leavitt on Tuesday. The White House aims to safeguard intellectual property rights, with the possibility of alleged theft being investigated by the President's crypto czar.
Leavitt highlighted that the National Security Council is scrutinizing the implications of the app, emphasizing the importance of this event for the American AI industry. Trump's earlier remarks on the matter were reiterated, with assurances that steps are being taken to maintain "American AI dominance."
In response to concerns raised by investors regarding the potential market impact of DeepSeek, White House artificial intelligence and crypto czar David Sacks discussed the concept of distillation in AI and its implications for intellectual property. Sacks noted that leading AI companies are planning preventative measures to deter the proliferation of copycat models.
Former President Joe Biden implemented restrictions on AI chips during his administration in an effort to limit AI advancements in China. Conversely, Trump viewed the emergence of DeepSeek as an impetus for American companies to enhance their competitiveness. Trump expressed optimism about the potential cost-effectiveness resulting from Chinese innovations in AI, urging American industries to refocus on maintaining a competitive edge.
Sacks suggested on Fox News that American AI companies might have lost focus and become complacent. Trump reiterated China's acknowledgment of U.S. ingenuity and suggested that American companies could leverage cheaper AI technology developed in China to find cost-efficient solutions.
The Commerce Department, led by Howard Lutnick, is leading efforts to prevent the export of AI chips to China, with measures targeting companies such as Nvidia and Advanced Micro Devices. Lutnick is set to face his nomination hearing on Wednesday.