United States former President Donald Trump issues a warning on DeepSeek, sounding the alarm for America's artificial intelligence sector.
Chinese AI Startup DeepSeek Challenges Global Giants
In the dynamic world of artificial intelligence (AI), a new player has emerged to shake up the global landscape. DeepSeek, a Chinese AI startup based in Hangzhou, is making waves with its impressive advancements in AI technology.
Founded in 2023, DeepSeek is led by CEO Liang Wenfeng and primarily funded by the hedge fund High-Flyer. The company's focus on resource-efficient AI architectures, open-source models, and innovative talent strategies sets it apart from its competitors.
One of DeepSeek's key innovations is its efficient use of computing resources. For instance, training DeepSeek-V3 required just 2,000 Nvidia H800 GPUs, compared to tens or hundreds of thousands used by competitors such as Meta or OpenAI. This efficiency not only enables cost-effective model deployment and inference but also positions DeepSeek as a formidable competitor.
DeepSeek employs novel techniques like Multi-head Latent Attention (MLA) to reduce memory bottlenecks and Group Relative Policy Optimization (GRPO) to improve reinforcement learning efficiency. These innovations contribute to DeepSeek's powerful AI capabilities with fewer computational requirements.
The startup also stands out for its open-source commitment, allowing public access, modification, and research to its generative AI chatbot models. This approach contrasts with many other leading AI companies that restrict their models.
DeepSeek's strategy prioritizes advancing AI technology over immediate market monetization, allowing the company to operate with fewer regulatory constraints in China. The company also recruits young technical talent, often recent graduates, with an emphasis on passion and creativity, setting it apart from traditional Chinese tech companies' work culture.
DeepSeek's major accomplishments include the release of DeepSeek-V2 in May 2024, a cost-effective chatbot that outperformed similar AI products from Chinese giants. In December 2024, DeepSeek-V3 was rolled out, followed by the DeepSeek-R1 reasoning model and chatbot application in January 2025. These releases expanded DeepSeek’s reach into international markets and directly competed with US-based AI products.
The DeepSeek AI assistant app rapidly ascended to the top of the Apple US App Store in early 2025, notably displacing ChatGPT—a historic milestone for a Chinese AI model in the American market. This success caused significant adverse impacts on major US tech stocks, including Nvidia, Microsoft, and Meta, reflecting the disruptive potential of DeepSeek’s technology in the global AI industry.
Sam Altman, CEO of OpenAI, has acknowledged DeepSeek's technological advancements, but remains committed to delivering superior AI models that push the boundaries of innovation. Donald Trump, on the other hand, has issued a warning to American AI companies about the emergence of DeepSeek and has announced a $500 billion AI project, Stargate, to bolster AI development through enhanced computing power.
In conclusion, DeepSeek is a trailblazing AI startup that leverages resource-efficient AI architectures, open-source models, and innovative talent strategies to challenge industry giants on performance and cost, marking a significant shift in the global AI landscape. The ongoing rivalry between US and Chinese AI companies underscores the dynamic nature of the industry, with DeepSeek serving as a wake-up call for US companies to refocus their efforts on innovation and competition to succeed in the global AI race.
Technology, powered by artificial intelligence, is the driving force behind DeepSeek's innovative advancements, setting them apart in the global AI landscape. DeepSeek's strategic focus on resource-efficient AI architectures and open-source models, combined with their artificial-intelligence capabilities, positions them as a formidable competitor to global giants.
