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They announced Stargate, a joint venture that promises up to $500bn in private investment for AI infrastructure: data centers in Texas and beyond, along with a promised 100,000 new jobs.<\/p>\n
The US seemed to think its abundant data centers and control over the highest-end chips gave it a commanding lead in AI, despite China’s dominance in rare-earth metals and engineering talent.<\/p>\n
Some have even seen it as a foregone conclusion that America would dominate the AI race, despite some high-profile warnings from top executives who said the country’s advantages should not be taken for granted. <\/p>\n
The US may still go on to command the sector, but there is a sense that DeepSeek has shaken some of that swagger.<\/p>\n
Trump’s words after the Chinese app’s sudden emergence in recent days were probably cold comfort to the likes of Altman and Ellison. He called this moment a “wake-up call” for the American tech industry, and said finding a way to do cheaper AI is ultimately a “good thing”.<\/p>\n
It is also worth noting that it was not just tech stocks that took a beating on Monday. Energy stocks did too. DeepSeek’s arrival on the scene has upended many assumptions we have long held about what it takes to develop AI.<\/p>\n
Maybe that nuclear renaissance – including firing up America’s Three Mile Island energy plant once again – won’t be needed. Maybe it does not take so much capital, compute, and power after all.<\/p>\n
For now, the future of semiconductor giants like Nvidia remains unclear.<\/p>\n<\/div>\n<\/div>\n
![\"Deepseek](\"https:\/\/ichef.bbci.co.uk\/ace\/standard\/240\/cpsprodpb\/d9ff\/live\/3937d420-dd35-11ef-a37f-eba91255dc3d.jpg.webp)
<\/picture><\/span>Reuters<\/span><\/div>\n<\/figure>\n<\/div>\n