This is really the first big market sell-off that we're seeing of Trump 2.0,

and it's all being fueled by AI and concerns about a new rival AI company.

Let's take a quick look at the market.

We're seeing Dow Futures down 400.

Donald Trump has announced a blitz of announcements designed to boost the US tech industry.

But then a new Chinese AI model came along and caused a stir on Wall Street and across the pond.

Is this a new dawn or a fresh threat?

Welcome to PowerPlay, Politico's weekly podcast, where we talk to some of the voices who are shaping transatlantic thinking in the new Trump era.

I'm Anne McElroy, and if you haven't already, please add following this podcast to your late New Year's resolutions. My guest this week is one

of Silicon Valley's leading entrepreneurs, Reid Hoffman. Co-founder of LinkedIn, he's invested in

companies like Airbnb and Facebook, and he's now investing in AI startups too. His new book is

called Super Agency, What Could Possibly Go Right

With Our AI Future. But how does his optimistic vision for the future square with the disruptive

force of a world powered by artificial intelligence and one in which American and Chinese rivalry

could have unforeseen consequences? Rita Hoffman, welcome to PowerPlay.

Great to be here. Thanks for having me.

As I talk to you, Wall Street has just been shaken by the emergence of a Chinese AI

startup company called Deepseek, which has an R1 model that was the most downloaded free app

in the US, just a week after it

launched. As we know by now, it's made at a fraction of the cost of American rivals and shares

in major tech firms, particularly in Vidiofel sharply. They've bounced back a bit since. But do you

think overall this story has something very important

...