| Dear Reader,
For months, I’ve been pounding the table about the importance of the U.S. achieving Artificial Super Intelligence, or ASI, before any other country. Especially China.
Trump made it clear on the campaign trail that he wants the U.S. to be the top AI superpower in the world.
And I predicted that he would create his own “Manhattan Project” initiative to achieve this goal shortly after he was elected.
Last Tuesday, President Trump took a major step forward when he announced The Stargate Project.
This joint venture between OpenAI, Softbank and Oracle was put together to help build artificial intelligence infrastructure in the United States.
And it comes with a massive $500 billion price tag.
Of course, that hefty cost will be worth it if it ensures a U.S. victory over China in the race to ASI.
But after the events of last week, what might have seemed like a guaranteed victory is now in doubt.
Here’s what happened… DeepSeek’s R1 Just Changed Everything DeepSeek is a Chinese AI company that was started by a quantitative analysis firm in late 2023.
Last week, it shocked the tech world when it released its DeepSeek-R1 AI assistant, a new large language model (LLM) that can think through problems step-by-step.
In that way R1 is similar to OpenAI’s reasoning model called o1. DeepSeek-R1 takes its time — sometimes several minutes — to work out tough questions, just like humans do.
Except R1 did just as well or better than OpenAI's o1 on major industry testing benchmarks.
But that’s not why everyone in the tech world is freaking out about R1 right now.
It’s because DeepSeek built its LLM for a tiny fraction of the cost that OpenAI, Meta, Google and other AI companies have spent to develop their own AI models.
Deepseek says it spent only $5.6 million on training costs for R1, and that it uses fewer high-end computer chips than OpenAI did.
Its AI can even search the internet while it talks to you, which is something OpenAI's best AI can't do yet.
But the story gets even crazier.
Because while OpenAI charges people $20 or more per month to use their best AI, DeepSeek made their AI free for anyone to use and modify.
And it’s much cheaper to operate than OpenAI’s model.
In fact, R1 costs about 90% less to operate, causing many AI enthusiasts to jump ship to this new Chinese model.  This frenzy of people downloading DeepSeek R1 saw it displace ChatGPT as the App Store’s top downloaded app on Monday.
What’s more, it caused a massive $1 trillion tech sell-off.
Chipmaker Nvidia was hit especially hard.  And for good reason. Here’s My Take Marc Andreessen, the Silicon Valley venture capitalist, is calling this AI's "Sputnik moment" - a reference to the satellite launched by Russia in 1957 that started the space race.  And I agree.
The AI arms race that I’ve been banging the table about for the last several months just hit crisis level.
In mere days, an unknown Chinese company became a major threat by proving it can build comparable AI for a tiny fraction of the cost and computing power.
And folks are wondering about the utility of the hundreds of billions they’ve poured into large cap tech stocks like Nvidia (NVDA), Meta (META), Alphabet (GOOG) and Microsoft (MSFT).
That’s why you saw Monday’s market panic.
But there’s one story the mainstream media is NOT covering about this panic.
You see, I believe America is at its best when it's faced with a crisis like this one.
And I’m convinced that President Trump won’t take it sitting down.
Last week he signed an executive order fixing Biden’s disastrous AI policies, as I predicted.
And I believe his next move could checkmate China and the rest of the world in AI.
It has to do with a secret weapon the U.S. has at its disposal…
A unique way to combat these types of emergencies.
I call it a “Code Red Alert.”
It’s for rare situations just like this China-AI crisis…
Code Reds are rare but very powerful ratings the government assigns technology that is of the utmost national security.
And I believe Trump and his new Defense Secretary are already preparing to pull the emergency alarm.
When that happens, it will instantly trigger a massive government call to action.
I believe this Code Red will put a full stop to China’s advancements…
By funneling billions - possibly even trillions– of dollars into several cutting-edge AI companies.
And the profits on these stocks could be life-changing.
I put together a new, urgent briefing with all the details, including where I believe the money will flow, and when…
And how to position yourself for the potential for the biggest profits.
Click here to access this urgent briefing right now.
Regards, 
Ian King
Chief Strategist, Banyan Hill Publishing
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