China has shocked the tech industry by launching its new Ai model named as DeepSeek in the market. DeepSeek is an Ai model for deep data analysis. Its launch is shocking for the world because it has emerged as the biggest competitor of America’s OpenAi. OpenAi has spent a lot of time and money almost $6 billion in the making of OpenAi but China made its Ai model in just 2 months for almost $6 million. This emergence of DeepSeek will have a great impact on the future of the tech industry.
China message to USA
The highlight of this event is the release timing of DeepSeek. On January 20th, 2025, the newly elected President of the USA, Donald Trump took oath as the 47th President of the United States. On the morning of the same day, China released its Ai model and gave strong signals to the USA of their competitors.
Former President of the USA, Joe Biden had made several tech sanctions over China. But soon President Trump took charge, China launched their Ai model and gave a clear message to the Trump government not to think of any tech sanctions over China.
Concerns for American Tech CEOs
China’s Ai model DeepSeek performs as well as America’s OpenAi. It was stated earlier that China developed the Ai model with half the technology and price of OpenAi. Also, DeepSeek allows the general public to view, customize, distribute and use this software.
Not only the CEO of OpenAi but also the CEOs of other tech companies such as NVIDIA, Google, Meta have a great concern and worry over this development. Before the launch of this Ai model, it was taught that the world of Ai is going to be ruled by the United States of America.
USA’s Mistake
The DeepSeek will be the major obstacle in the path of America’s Ai rule. In May 2024, while talking to Bloomberg Caroline Hyde at the Special Competition Studies Project conference in Washington the former CEO of Google Eric Schmidt said, “The USA is way ahead of China and the rest of the world in Ai”. He is one of the most well known voices in the USA.
The people of the USA were surprised by his tone at a talk at Harvard University just after the 6 months of the previous statement. While giving a speech at the Politics Forum of the Harvard university, Eric Schmidt said, “USA is falling behind China in the race to develop more powerful Artificial Intelligence”. This statement was shocking for the entire world.
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USA’s Restriction on China in Tech Industry
This new innovative technology from China will surely have a huge impact on the coming trade war with the return of Donald Trump to the power of the USA.
The map shown above clearly shows the recent restrictions of the USA on creating new Ai chips. The actual aim of these restrictions is to prevent the non-west from growing in the field of Artificial Intelligence. America only permits their closest allies in developing Ai chips.
By restricting the non-western countries, America is trying to rule over the Ai world. For this they had also restricted their close non-western countries such as Mexico and India.
The efforts of the USA to restrict China have turned out to be in the favor of China. China keeps progressing in several industries especially in the Tech industry.
How is China making progress?
China has greatly progressed in semiconductors and Ai. Over the past several years, China has imported a billion dollars of microchips from the United States. That was the time when China was happy to be a customer of the USA.
The efforts of the USA to restrict China have turned in their favor because when the USA cut off China, the microchips were sent to local companies of China. Now these chips are more profitable and capable of investing in research and development. With the help of this China has developed their Ai model DeepSeek R1.
Quality and Price of DeepSeek
The development of DeepSeek is the message to the tech world that they can develop such technologies in less budget. The price of the DeepSeek is also a major concern for tech CEOs. This deal will have a significant impact on the future of the USA tech industry. In the recent blog post from the Ai team at Meta has gone viral and exposes Mark Zuckerberg and other Tech CEOs.
Another reason for China’s sudden progress in the field of Tech is that the world has underestimated China. 10 years ago, in 2014, Harvard Business Review published an article answering why China cannot innovate. But today the world is witnessing the progress that China has made in the tech industry.
Several billionaire investors such as Marc Andreessen have admitted and praised the capabilities and abilities of DeepSeek. He says, “DeepSeek R1 is one of the most amazing and impressive breakthroughs I have ever seen – and as open source, a profound gift to the world”.
With the constant progress of China in the tech industry the world is witnessing and admitting China as the new and emerging leader in the field of Technology and Artificial Intelligence leaving behind the USA.
The Artificial Analysis Index Quality analyzed the results that were measured independently. In this graph China’s DeepSeek performs quite well as US OpenAi in contexts of quality.
Also the price of DeepSeek is 30 times cheapers than Open Ai. This cheap price is a huge concern for the big tech firms like NVIDIA, Google, Meta etc.
Conclusion
China’s new Ai model DeepSeek has completely surprised the world and big tech companies have shown great concern over this innovation. As President Trump returned to the White House, China gave a clear message to the USA government not to think about more sanctions on China.
The development of DeepSeek is changing the tech world and China is progressing in the tech world at a very fast speed. Moreover, China is emerging as the new leader in the field of tech and Ai leaving the USA behind. The whole world is curious about the next step of newly elected President Trump.
