Kevin O’Leary Issues Urgent Warning: China’s AI is a Threat to America’s Safety
The artificial intelligence (AI) race has escalated, with China firing the first shot that rattled the U.S. stock market, according to “Shark Tank” star Kevin O’Leary.
In an article featured by the Daily Mail, O’Leary wrote that a massive $1 trillion in stock market value was wiped off American tech companies when Chinese startup DeepSeek unveiled an AI tool that rivals the best offerings from U.S. firms on Monday.
O’Leary noted that DeepSeek’s model was built for a fraction of the cost that U.S. companies like OpenAI spent to develop their technology.
DeepSeek alleged that their engineers trained their AI model with just $6 million worth of computer chips. In contrast, OpenAI reportedly spent around $3 billion in 2024 alone to advance its models, O’Leary noted.
What sets this breakthrough apart is that DeepSeek achieved this with relatively outdated technology, as U.S. sanctions have blocked China from acquiring the world’s most advanced computer chips, according to O’Leary.
He stated that the announcement sent shockwaves through Wall Street, with Marc Andreessen, a leading tech investor, likening the development to “AI’s Sputnik moment,” a reference to the Soviet Union’s launch of the first satellite into space in 1957.
At the time, the U.S. was stunned by the Soviet Union’s leap forward in the space race, which sparked fear of a potential global threat. Over six decades later, China’s success in AI raises similar concerns about technological and military supremacy.
Despite the initial panic on Tuesday as U.S. markets began to recover, O’Leary pointed out that there are questions about the accuracy of DeepSeek’s claims. Some speculate that the Chinese startup may have bypassed sanctions and used more advanced chips, which would explain their surprising progress.
However, the risk of Chinese dominance in AI remains undeniable, according to the businessman.
As AI technology plays an increasingly vital role in future military capabilities, O’Leary said that the stakes are high, stating that AI can be used to power autonomous weapons, control fleets of drones and detect and neutralize threats in real time.
If China can develop faster, smarter and more cost-effective AI models, they could gain a significant edge in weaponry and military strategy, O’Leary argued.
With DeepSeek’s rapid rise in popularity, he warned that it posed an “immediate national security risk to America,” as it reached the top download on the Apple Store on Monday.
“The American people have to be on their guard,” wrote O’Leary. “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.”
O’Leary, who has been vocal about America’s need to prioritize AI innovation, believes the U.S. can still win this technological arms race. He stresses that under the leadership of President Donald Trump, the U.S. has the potential to regain control in the AI sector.
Trump’s “Stargate Project,” which pledges $500 billion in AI infrastructure investment by 2029, could give the U.S. a major competitive advantage, he argued.
O’Leary, who is personally invested in AI development, has also noted that Trump could use tariffs to counter China’s rise in AI technology. With the U.S. as the largest global buyer of AI, Trump’s administration could price Chinese AI products out of the American market.
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