THE CURRENT Issue 1048 · February 5, 2025

Deep Trouble

China's newDeepSeek AI poses a strategic challenge to the US tech industry

Deep Trouble
China’s new DeepSeek AI poses a strategic challenge to the US tech industry  

After years of market domination by a handful of American big tech giants, DeepSeek seems to have achieved results on par with OpenAI’s ChatGPT, using less sophisticated technology, at a fraction of the price. All this while seemingly running circles around a set of Biden administration regulations intended to impede China’s AI progress.

Venture-capitalist Marc Andreessen won the narrative-framing contest, labeling it a “Sputnik moment” — a reference to the Soviet satellite that spurred the US to get serious with its space program. President Donald Trump called DeepSeek a “wake-up call” to America.

With DeepSeek’s rapid success spurring many to question the wisdom of American attempts to stymie global AI challenges, the question remains: Is the company’s achievement as dramatic as it has been made out to be? And how should the United States respond?

The AI Breakout

Artificial intelligence entered the wider public consciousness in 2023. When OpenAI’s ChatGPT became easily accessible, many users were simultaneously intrigued and frightened by the experience of interacting with a computer program that convincingly mimicked an extremely knowledgeable human being.

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