The Rise of DeepSeek and China’s AI Challenge to the U.S.

Artificial Intelligence (AI) has become the defining technology of the 21st century, with companies like OpenAI, Google, and Microsoft leading the charge. However, a new player has emerged from China that is shaking up the AI industry: DeepSeek. This article explores how DeepSeek, founded by Chinese entrepreneur Liang Wenfeng, has taken the AI world by storm, challenging American dominance in the field.

The Rise of DeepSeek

1. The Catalyst: DeepSeek R1’s Release

On January 20, 2025, DeepSeek launched its latest AI model, DeepSeek R1, an open-source large language model that rivals and, in some cases, outperforms OpenAI’s ChatGPT.

• DeepSeek R1 boasts a smaller size and lower cost compared to American AI models.
• The model was designed to be more efficient in training and performance, using significantly fewer computational resources.
• Its release triggered a market panic, wiping out $1 trillion in tech stock value, including a record $589 billion single-day loss for NVIDIA.

This unexpected development caught U.S. tech giants off guard, raising concerns about China’s rapidly growing AI capabilities.

Full article from here.