China realise DeepSeek disrupts American plans for AI dominance

DeepSeq AI model outperforms other AI models like ChatGPT, Gemini, and Claude. Photo: Reuters

DeepSeek has been a hot topic in the tech world. The Chinese AI company’s DeepSeek AI model is making waves on social media, with market analysts suggesting that it has already outperformed models like ChatGPT, Gemini, and Claude. 

As a result, China is challenging America’s long-standing dominance in artificial intelligence. 

DeepSeek, an advanced AI model, was developed in a Hangzhou-based research lab founded in 2023 by engineer Liang Wenfeng. The model, built on an open-source framework, gained immense popularity immediately after its chatbot app was launched on Apple’s App Store. In countries like the United States, United Kingdom, and China, it has already surpassed ChatGPT in downloads. Experts believe DeepSeek presents a serious challenge to Silicon Valley’s AI supremacy. 

Unlike its Western counterparts, DeepSeek prioritizes affordability and efficiency. The DeepSeek R1 model operates at a lower cost than most AI models, putting pressure on companies like OpenAI and Meta. 

Developing state-of-the-art AI requires expensive processors, but DeepSeek has taken a different approach by using cost-effective AI hardware and innovative training techniques. Since it is open-source, developers can easily integrate DeepSeek’s technology at minimal expense.

Many analysts believe DeepSeek’s rise is not just about technology it’s also political. The U.S. has restricted China’s access to advanced semiconductor exports, aiming to limit its AI capabilities. 

However, China has bypassed these restrictions and introduced DeepSeek as a direct challenge to American dominance. This disruption is already affecting the U.S. stock market, as shares of Nvidia, Meta, Microsoft, and other AI giants have dropped in response to DeepSeek’s success.

Experts warn that DeepSeek’s low-cost AI solutions could significantly reshape America’s AI investment landscape. The rise of DeepSeek may also impact AI chip manufacturers, reducing their profit margins as the industry shifts towards more affordable AI models.

With China rapidly advancing in AI, the global tech race is heating up, and the battle for AI supremacy between the U.S. and China is far from over.