February 2025 – Chinese tech startup DeepSeek has shaken the artificial intelligence industry with its latest AI model, R1, which experts claim rivals OpenAI’s o1 model at a fraction of the cost. The launch in late January led to tech stocks tumbling as DeepSeek momentarily surpassed ChatGPT to become the top app in Apple’s App Store, raising concerns among U.S. tech giants about the nation’s position in the AI race against China.
The impact of DeepSeek’s model was evident at the Artificial Intelligence Action Summit in Paris, where U.S. Vice President JD Vance reinforced the nation’s commitment to maintaining leadership in AI. While not directly addressing DeepSeek or China, Vance stressed that the U.S. intends to remain at the forefront of AI innovation while partnering with other nations.
Beyond efficiency, DeepSeek R1 is gaining attention for its reasoning abilities and the company’s decision to make key aspects of its technology publicly accessible. AI experts believe this move will significantly advance the field, much like how ChatGPT reshaped industries worldwide.
However, the rise of DeepSeek has also sparked skepticism. Some researchers, including SemiAnalysis, have questioned its claim of training R1 for just $5.6 million. Meanwhile, OpenAI has suggested that DeepSeek may have used its models to train R1 without authorization. Additionally, concerns about DeepSeek’s links to the Chinese government have led U.S. lawmakers to call for its ban on government devices, similar to previous actions against TikTok.
Despite mixed reactions, major tech companies have acknowledged DeepSeek’s influence. Microsoft CEO Satya Nadella and Apple CEO Tim Cook both highlighted its innovations, while Google DeepMind’s Demis Hassabis described it as “the best work I’ve seen come out of China.”
AI developers and researchers, including those at Hugging Face, are currently working to further analyze DeepSeek’s contributions. While the company has released a research paper and model parameters, it has not disclosed its code or training data, leaving some technical aspects open to speculation.
As the AI industry rapidly evolves, DeepSeek’s impact is undeniable. Experts predict that while DeepSeek R1 may soon be surpassed by new advancements, its contributions mark a significant milestone in the global AI landscape.
