(CLO) DeepSeek, a low-cost AI technology startup from China, has shaken the global stock market by launching its latest artificial intelligence (AI) models.
US President Donald Trump has called DeepSeek a "wake-up call" for American companies as they watch Chinese rivals make huge strides at low cost.
Deepseek Logo. Screenshot.
Why DeepSeek is so interesting
Since OpenAI launched ChatGPT in late 2022, Chinese tech companies have been working to create similar AI chatbots. DeepSeek claims its new AI models can match or surpass leading competitors like OpenAI or Meta, but at 20% to 50% the cost of similar American products.
DeepSeek made a splash when their AI assistant app became the most downloaded free app on the Apple store on January 27, 2025.
The ability to "rethink" the problem and the significantly cheaper price of DeepSeek's R1 model have made US companies worry about the effectiveness of large investments in data centers and AI chips.
Stacy Rasgon, a semiconductor industry analyst at Bernstein, commented that DeepSeek's technology is not "magic", but it makes good use of available resources.
DeepSeek is a startup based in Hangzhou, China. The company's founder and controlling shareholder is Liang Wenfeng, co-founder of hedge fund High-Flyer.
The company was founded in 2023 and quickly launched its first AI language model the same year.
DeepSeek made a splash when it announced its R1 AI model, which outperformed its American rival in terms of thinking ability and price. High-Flyer, DeepSeek’s parent company, also owns patents related to the chip clusters used to train AI models. The two companies share an office, raising questions about their close relationship in developing the technology.
DeepSeek’s success has caught the attention of China’s leadership. On the day of the new product’s launch, Liang Wenfeng attended a closed-door conference hosted by Chinese Premier Li Qiang.
Liang's presence at the event suggests that DeepSeek is being seen as a symbol of Beijing's strategy of self-reliance in the AI industry, in response to US export controls.
Impact on US-China competition
DeepSeek's advances are fueling debate in the US about how to deal with China's AI development.
Marc Andreessen, a venture capitalist and technology adviser to Mr Trump, has likened DeepSeek R1 to the “Sputnik of AI” – a reference to the space race between the US and the Soviet Union after the Soviet Union successfully launched the Sputnik satellite in 1957.
Andreessen warns that if the US imposes too many regulations on the AI industry, it will allow China to take over. However, many experts say the timing of DeepSeek’s launch is not just technologically coincidental, but also political .
Gregory Allen, director of the Wadhwani AI Center at the Center for Strategic and International Studies (CSIS), said that DeepSeek's launch of a new product just as President Trump took office was a message that US export controls could be ineffective or counterproductive.
Mr. Allen compared the event to Huawei launching a new phone amid diplomatic tensions with the US in 2023.
Shortly after taking office on January 20, Mr. Trump signed an executive order calling for “identification and elimination of loopholes in export controls,” indicating that he would continue and tighten the policies of the previous Biden administration.
Cao Phong (according to CNN, NYT, DeepSeek)
Source: https://www.congluan.vn/deepseek-la-gi-va-vi-sao-no-dang-gay-chan-dong-nganh-ai-toan-cau-post332278.html
![[Photo] General Secretary To Lam attends the launch of 3 digital platforms serving the implementation of Resolution No. 57-NQ/TW](https://vphoto.vietnam.vn/thumb/402x226/vietnam/resource/IMAGE/2025/7/2/d7fb7a42b2c74ffbb1da1124c24d41d3)
Comment (0)