U.S. officials are looking at the national security implications of the Chinese artificial intelligence app DeepSeek, White House press secretary Karoline Leavitt said on Tuesday, while President Donald Trump’s crypto czar said it was possible that intellectual property theft could have been at play. The National Security Council is reviewing the app’s implications, Leavitt said. “This is a wake-up call to the American AI industry,” she added, echoing Trump’s comments from a day earlier while also saying the White House was working to “ensure American AI dominance.” Investors sold technology stocks across the globe on Monday over concerns the emergence of a low-cost Chinese AI model would threaten market dominance of U.S.-based AI leaders such as OpenAI and Alphabet’s Google. White House artificial intelligence and crypto czar David Sacks was asked on Fox News if there was intellectual property theft involved in the rise of DeepSeek.
“Well, it’s possible. There’s a technique in AI called distillation, which you’re going to hear a lot about, and it’s when one model learns from another model,” Sacks said in the interview. “I think one of the things you’re going to see over the next few months is our leading AI companies taking steps to try and prevent distillation … That would definitely slow down some of these copycat models,” he added.

Full report : United States is investigating whether the Chinese AI App, DeepSeek has national security implications.