DeepSeek, the Chinese artificial intelligence startup that sent tech stocks reeling this week, sparked fresh concerns about U.S. companies losing their competitive edge in the global race for AI dominance.
While DeepSeek claims to have built its R1 model with less than $6 million and limited computing power, some industry analysts say this development poses little threat to America’s AI leadership, with one even suggesting the technology might backfire against Chinese authorities as unwieldy AI could fuel information freedom and social dissent. The Chinese company’s approach, though efficient, comes as U.S. firms push ahead with more ambitious projects and infrastructure investments.
“If DeepSeek is as important as all of the papers say it is — and I think that there’s good reason to believe all of this — it makes OpenAI’s projects all the more valuable and all the…