The success of DeepSeek’s new artificial intelligence model points to how China might eventually achieve an even bigger technological breakthrough in the face of U.S. export curbs: Producing its own cutting-edge chips.
As tech leaders and politicians marvel at DeepSeek’s apparent ability to build an innovative AI model without spending nearly as much as rivals in the U.S., a development that roiled markets on Monday, the question now is how exactly the Hangzhou-founded company pulled it off — and what it means for American efforts to stay ahead of China in the tech race.
While much remains unclear, such as the exact chips DeepSeek used and whether it has enough on hand to further develop its AI models, its success highlights some of China’s key advantages. The country has a deep pool of highly skilled software engineers, a vast domestic market and government support in the form of subsidies as well as funding for research institutes. It also has a pressing necessity to find a way to do more with fewer resources.
