Important Takeaways:

• The Artificial Intelligence wars have begun.
• China fired the first shot.
• On Monday, $1 trillion in stock market value was wiped off the books of American tech companies after Chinese startup DeepSeek created an AI-tool that rivals the best that US firms have to offer – and at a fraction of the cost.
• DeepSeek claims its engineers trained their AI-model with $6 million worth of computer chips, while leading AI-competitor, OpenAI, spent an estimated $3 billion training and developing its models in 2024 alone.
• What’s more, DeepSeek says they accomplished this feat with relatively dated technology. (US sanctions deny the Chinese the world’s most advanced chip tech.)
• That news landed on Wall Street like a ton of bricks. This is the first time that China has beaten the US to a major AI discovery.
• It was nothing short of ‘AI’s Sputnik moment,’ according to Marc Andreessen, one of the foremost tech investors in the world, a reference to October 4, 1957, the day the Soviet Union beat the US to launch the first satellite into space.
• However, America cannot ignore the threat of Chinese AI dominance.
• In this day and age, artificial intelligence translates to military supremacy. Whoever commands the best AI will win wars in the future.
• DeepSeek also poses an immediate national security risk to America.
• On Monday it was the top download on Apple’s store – shooting past OpenAI’s ChatGPT – as thousands of Americans loaded it onto their phones.
• The American people have to be on their guard. If you download the app, you better ask who’s watching and who’s listening. From what I can tell, it scrapes your emails and personal data.
• As long as America recognizes DeepSeek for the threat that it is, there is no need to panic.
• Instead, just like with Sputnik, America must seize this challenge to innovate and regain AI supremacy once again.

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