US Reviews National Security Implications of Chinese AI App DeepSeek

The White House is currently assessing the national security risks posed by DeepSeek, a Chinese artificial intelligence app, according to press secretary Karoline Leavitt.

Meanwhile, President Donald Trump’s AI and crypto advisor, David Sacks, suggested that intellectual property theft may have played a role in the development of the application.

Leavitt confirmed that the National Security Council is conducting a thorough review of DeepSeek’s implications. “This is a wake-up call to the American AI industry,” she stated, reinforcing Trump’s earlier remarks and emphasizing the administration’s commitment to maintaining U.S. leadership in artificial intelligence.

Concerns over DeepSeek’s emergence prompted a global sell-off in technology stocks on Monday, as investors feared that a low-cost Chinese AI model could challenge the market dominance of U.S.-based leaders such as OpenAI and Google, a subsidiary of Alphabet.

During an appearance on Fox News, Sacks was asked whether DeepSeek’s rise involved intellectual property theft. “Well, it’s possible. There’s a technique in AI called distillation, which allows one model to learn from another,” he explained. “I think over the coming months, we’ll see leading American AI companies taking steps to prevent distillation… That could certainly slow down some of these copycat models.”

Under former President Joe Biden’s administration, the U.S. imposed extensive export restrictions on AI chips and related manufacturing equipment in an effort to hinder China’s AI advancements.

Trump, however, expressed a different perspective, suggesting that DeepSeek’s emergence should serve as motivation for American companies to innovate.

“The release of DeepSeek AI from a Chinese company should alert our industries that we need to remain laser-focused on competition and innovation,” Trump said on Monday.

Sacks echoed this sentiment in his Fox News interview, noting that American AI companies may have become “a little distracted” and “perhaps too complacent.”

Trump recalled discussions with Chinese leaders who acknowledged the brilliance of American scientists and suggested that if China could develop cheaper AI solutions, U.S. firms would adapt accordingly. “We always have the ideas. We’re always first. So I’d say this could be a positive development—spurring innovation while reducing costs,” he remarked.