By Joen Martinsen and Pascaline Gaborit
DeepSeek, a Chinese AI chatbot, has rapidly gained traction, becoming the most downloaded free app in the U.S. shortly after its launch. Its R1 model, now open-source, claims to rival OpenAI’s O1 model in performance.
What sets DeepSeek apart is its lean budget—the development team asserts they achieved this milestone with less than $6 million, a fraction of the billions invested in AI by U.S. tech giants like OpenAI. A key factor in this breakthrough is its reliance on Nvidia H800 chips, which operate with reduced capacity, avoiding dependency on high-end Nvidia A100 chips, restricted due to U.S. export bans.
For perspective, OpenAI was founded a decade ago, employs 4,500 people, and has secured $6.6 billion in funding. In contrast, DeepSeek, established less than two years ago, operates with just 200 employees and was developed with a budget of under $10 million .
Does DeepSeek signal a new era of AI innovation or raise concerns over competition, security, and regulation?.
This accomplishment reflects broader implications in the global AI race, especially as the U.S. has implemented strict export controls targeting China’s access to advanced semiconductor. Restrictions include export bans on chips and chipmaking equipment since October 2023, and a first-of-its-kind prohibition on U.S. persons aiding Chinese chip development without a license. These measures aim to limit China's advancements in both AI and military modernization, and for the U.S to maintain technological supremacy. However, DeepSeek’s breakthroughs demonstrate that resourceful methods can counter such constraints, potentially diminishing the effectiveness of U.S. policies. While this raises questions about America's long-term strategic position, it also emphasizes the potential for less resource-intensive, climate-friendly AI innovations. This could be an opportunity for other companies to imitate this success, and this could be especially true as the developed system is shaped with open access .
DeepSeek-R1 is indeed an open-source AI model. The company has released it under the MIT license, ensuring clear open access for the community to utilize and build upon its model weights and outputs. This open-source approach allows developers worldwide to modify and integrate the model into various applications, promoting innovation and collaboration in the AI community. Eric Schmidt, former CEO of Google, has commented on DeepSeek's significance. In a recent op-ed, he stated that DeepSeek's emergence marks "a turning point" in the global AI race.
DeepSeek’s rise isn’t without serious ethical and geopolitical concerns. Critics have highlighted the tool’s alignment with Chinese state propaganda. Examples include labeling Taiwan's independence movement as a “challenge to China’s sovereignty” and avoiding contentious topics like the repression of opponents and of the Uyghurs through evasive or malfunctioning responses. Furthermore, data security remains a core concern, as Chinese companies are legally required to provide data to the government upon request. These fears echo the ongoing debate over TikTok and underscore the implications of a major Chinese competitor in AI not just as a technological force but also as a tool of state influence. Because of this, several experts and commentators has already called for President Trump to take action on this matter by banning DeepSeek in the U.S.
The development of artificial intelligence (AI) will fundamentally shape the future of our lives, work, and the global order. It is increasingly evident that superpower rivalry has sparked a high-stakes global race to dominate this transformative field. While recent advancements have marked a win for China in this race, it would be premature to declare that the Chinese are winning the broader AI battle. Free-tier ChatGPT users, impressed by DeepSeek's performance, believe they are witnessing a revolutionary jump in AI functionality. However, this perception is likely results from OpenAI having restricted its comparable high-end models to paying customers for some time.
On the ethical front, growing ties between major tech companies such as Meta and the U.S. federal government are generating concerns among users. Supremacy of U.S tech-giants in the AI-race might seem less than ideal. Still, China's undeniable deeper ties between technology companies and the Chinese Communist Party (CCP) creates a data security environment that deepens ethical concerns about censorship and disinformation. This underscores a sobering reality: neither American nor Chinese dominance in AI seems optimal when viewed through the lens of user trust, freedom, and ethical integrity, although for now is American companies favorable.
One potential silver lining in these developments is DeepSeek's decision to open-source its code, along with its API and a research paper detailing its methodology—essentially revealing how the model is built. This means that AI innovation is no longer limited to American companies; anyone worldwide can replicate and build upon this R1 model. Such openness could challenge the US's long-standing dominance in the AI race, fostering greater global competition. If other AI companies were to follow suit, it could lead to more affordable, less resource-intensive, and more sustainable AI systems—benefiting both consumers and the environment.
References
https://www.deepseek.com/
https://www.scientificamerican.com/article/why-deepseeks-ai-model-just-became-the-top-rated-app-in-the-u-s/
https://finance.yahoo.com/news/biden-chip-controls-may-force-092957115.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAExMV5kpqnuUH5Yl2ZNyg1t0kVw1w_pW9jgjnzeoA3IiVGN0viTPvtUy-g0rdo7uSM2Xm_bQa97eQUsp19nvhjyergqDJEYG1MCfKtHQ9E3QPq0f7jal15j9l2AUX0WS1_rbVt9dltiC9w82UKwA3gneJT1o3QfBcnjkbEnnwQxM
https://www.skynews.com.au/business/tech-and-innovation/chinas-deepseek-ai-is-a-malfunctioning-national-security-threat-filled-with-misinformation-and-propaganda/news-story/219c35e4f6c8596776e5521ae85bcfe7
https://www.skynews.com.au/business/tech-and-innovation/chinas-ai-deepseek-calls-for-taiwan-to-be-returned-malfunctions-when-questioned-about-uyghur-muslims/news-story/dbb0f8df9726d73fd98c79a3bfe76d88
https://www.lemonde.fr/economie/article/2025/01/27/la-start-up-chinoise-deepseek-cree-une-onde-de-choc-sur-le-secteur-de-l-ia_6518928_3234.html?lmd_medium=al&lmd_campaign=envoye-par-appli&lmd_creation=android&lmd_source=default
