"The release of DeepSeek, AI from a Chinese company should be a wake-up call for our industries that we need to be laser-focused on competing to win," said the president, addressing House Republicans in Miami on Monday.

Silicon Valley and Washington leaders said the app shows China can challenge the U.S. The Nasdaq lost 3 percent and chipmaker Nvidia shed $589 billion in market capitalization.

The Chinese start-up DeepSeek’s latest large language model has been described as a ‘Sputnik moment’ for the American tech industry