As Chinese AI application DeepSeek attracts hordes of American users, Trump administration officials, lawmakers and cybersecurity experts are expressing concern that the technology could pose a threat to U.S. national security.

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.

Elon Musk doesn’t miss an opportunity to take a dig at OpenAI — even when the news item in question is supposed to be favorable to President Trump. Just a few hours after yesterday’s White House presser on The Stargate Project wrapped up, Musk posted on X that “they don’t actually have the money.”

Shares for leading US chip firm Nvidia dropped by almost 17% on Monday after the emergence of DeepSeek stunned Silicon Valley.

Read: There goes 80% of the market. That's one reaction to new White House microchip rules. Expansion into services Nvidia is expanding its services to capture a larger share of AI infrastructure ...

The Trump administration is reportedly considering expanding the bans and sanctions against China, which could mean that the Nvidia H20 chip will no longer be legal to sell in the country.

Shares of NVIDIA Corporation (NASDAQ: NVDA) and other AI stocks such as Dell Technologies Inc. (NYSE: DELL), Oracle Corporation (NYSE: ORCL) and Arm Holdings plc (NASDAQ: ARM) are trading higher Tuesday buoyed by reports of a major private sector investment in artificial intelligence infrastructure.

The $500 billion Stargate project will be critical to "maintain American leadership in AI," one of the partners said in a statement.

The fallout: Several tech stocks slid yesterday, with AI chip maker Nvidia losing $589 billion in market capitalization. Trump said DeepSeek should be “ a wake-up call ” to tech leaders. Holocaust survivors marked the 80th anniversary of the liberation of Auschwitz.

No wonder OpenAI needs $500B for Stargate Americans could soon see the price of electronics skyrocket in response to a 25-100 percent import tariff on computer chips promised by US President Donald Trump on Monday.