The emergence of DeepSeek, a Chinese AI powerhouse, has ignited intense discussions across the globe. Recently, DeepSeek soared to the top of the free app download charts in the U.S. Apple App Store, surpassing the once-dominant ChatGPT. This surge has not only captured public attention but also triggered a notable decline in the stock prices of several American tech giants.
U.S. President Donald Trump labeled DeepSeek's ascent as a \"wake-up call\" for American industries, highlighting the urgency for domestic tech sectors to innovate and stay competitive. In a related development, U.S. congressional offices received notifications stating that the use of DeepSeek was \"unauthorized for official House use,\" as reported by Axios.
But why is DeepSeek's rise causing such concern in the U.S.? A comprehensive commentary by Yuyuan Tantian from China Media Group outlines three key reasons, drawing on insights from the China Academy of Industrial Internet.
1. Cost-Effective Disruption to the U.S. AI Model Monopoly
DeepSeek is revolutionizing AI development by offering top-tier performance at a significantly lower cost. While OpenAI reportedly invested $78 million to train GPT-4, DeepSeek achieved comparable results with under $6 million. This innovative approach lowers the entry barriers for AI development, making large-scale pre-training accessible to a broader range of entities beyond major tech corporations.
Furthermore, DeepSeek's latest model, DeepSeek-R1, is priced at just $2.2 per million tokens, starkly contrasting with OpenAI's o1 model at $60 per million tokens. This breakthrough not only makes AI more affordable but also unlocks vast potential for research institutions, enterprises, and industries reliant on knowledge-intensive processes.
2. Innovative Approach Sparks Panic Among U.S. Tech Professionals
DeepSeek's novel training strategy significantly reduces development costs by leveraging advanced algorithms to filter, summarize, and selectively process training data. Unlike OpenAI, which depends on vast computational resources, DeepSeek maximizes efficiency, enhancing performance while cutting expenses.
The impact is already palpable. Meta's substantial investments in training its AI model, Llama, have yet to surpass DeepSeek's performance, despite the hefty financial outlay. This situation has led Meta executives to reassess their spending and efficiency strategies, fostering anxiety among U.S. tech professionals who fear potential job and expertise risks in an increasingly competitive landscape.
3. China's AI Models Are Gaining Momentum
According to the China Academy of Industrial Internet, between Q4 2023 and Q1 2025, the capability gap between China's AI models and those of leading global firms has narrowed by nearly 75 percent. This trend indicates that DeepSeek's rise is part of a broader strategic advancement in China's AI sector rather than an isolated event.
The report also sheds light on global AI investment trends, revealing that China secured the second-largest AI investment at $5.5 billion, trailing the U.S. with $64.1 billion. While the U.S. maintains its leadership in funding, China's substantial investments highlight significant growth opportunities in the AI domain.
DeepSeek's advancements are not just technological feats; they signal a shifting balance in the global AI landscape, prompting the U.S. to reassess its strategies and investments to maintain its competitive edge.
Reference(s):
cgtn.com
