**Title: One Year Since DeepSeek’s Disruption: A Shift in AI Investment Priorities**
In January 2026, China’s DeepSeek released a large language model at a fraction of the cost of American counterparts, causing a significant market panic, notably a 20% drop in Nvidia’s stock. Investors worried that cheaper AI solutions would diminish U.S. companies’ competitive edge. This development sparked concerns about U.S. AI dominance and national security, prompting a strategic response from the federal government.
One year later, the U.S. government is proactively investing to secure its position in AI. Most notably, it allocated $1.6 billion to USA Rare Earth (USAR) to boost domestic production of vital rare earth minerals crucial for AI infrastructure. The government’s renewed focus on AI has resulted in the launch of the Genesis Mission, aimed at enhancing U.S. energy advancements, quantum computing, and national security through AI technologies.
