{"id":2586,"date":"2025-01-28T18:37:17","date_gmt":"2025-01-28T18:37:17","guid":{"rendered":"https:\/\/site.itshrt.com\/worldnews\/how-china-is-reacting-to-deepseek-upending-the-a-i-race\/"},"modified":"2025-01-28T18:37:17","modified_gmt":"2025-01-28T18:37:17","slug":"how-china-is-reacting-to-deepseek-upending-the-a-i-race","status":"publish","type":"post","link":"https:\/\/site.itshrt.com\/worldnews\/how-china-is-reacting-to-deepseek-upending-the-a-i-race\/","title":{"rendered":"How China Is Reacting to DeepSeek Upending the A.I. Race"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<\/p>\n<div data-testid=\"companionColumn-0\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Inside China, it was called the tipping point for the global technological rivalry with the United States and the \u201cdarkest hour\u201d in Silicon Valley, evoking Winston Churchill. It was possibly a breakthrough that could change the country\u2019s destiny.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The news that the Chinese start-up <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/01\/23\/technology\/deepseek-china-ai-chips.html\" title=\"\">DeepSeek<\/a> can build artificial intelligence models that are as good as OpenAI\u2019s, and at a fraction of the cost, tanked the <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/01\/27\/business\/us-stock-market-deepseek-ai-sp500-nvidia.html\" title=\"\">stock market on Monday and<\/a> sent Silicon Valley into a panic.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The claim about DeepSeek\u2019s success was viewed in China as a shot in the arm for a discouraged tech industry and a public that\u2019s suffering through a stagnating economy. On social media posts and state news outlets, DeepSeek was nothing less than a testament to the country\u2019s ability to innovate, especially when facing efforts by the United States to limit China\u2019s access to the most advanced technologies.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cA nation like China, which is equipped with substantial technological resources, cannot truly be suppressed,\u201d wrote Hu Xijin, a retired editor in chief of the Communist Party tabloid Global Times. \u201cU.S. sanctions in one area will only spur more comprehensive and resilient progress in China, potentially leading to breakthroughs that outpace the U.S.\u201d<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-1\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">The American semiconductor policies toward China \u201cmay ultimately backfire on the U.S,\u201d he wrote.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">On Monday evening, four out of the 10 most popular topics on the social media platform Weibo were related to DeepSeek.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cDeepSeek, keep up the momentum!\u201d a Weibo user in Beijing wrote.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cThe nation must protect the founder of DeepSeek at all costs! Seriously!\u201d wrote another user in Shanghai who usually posts about entertainment news.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Even a hashtag about the DeepSeek chief executive, Liang Wenfeng, visiting his hometown in southern Guangdong Province for the Lunar New Year, which falls on Wednesday, was a hot topic on Weibo. It had more than 50 million views.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-2\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Much of the outpouring of attention emphasized the U.S.-China tech rivalry.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The assumption that the United States would lead the next wave of the technological revolution was now open to challenge, Li Chengdong, an e-commerce investor, wrote on his WeChat timeline.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-3\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Fancaiju, a business blog on WeChat, had a post saying that DeepSeek had burst the U.S. stock bubble in one fell swoop \u2014 a more significant strike than when George Soros bet against the British pound in 1992.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The DeepSeek breakthrough had turned the $100 billion A.I. initiative known as <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/01\/21\/technology\/trump-openai-stargate-artificial-intelligence.html\" title=\"\">Stargate<\/a> that President Trump announced last week into \u201cInterstellar Graveyard,\u201d said a post on Fancaiju.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The commentariat took immense pride that DeepSeek was stocked with talented Chinese technologists educated in China.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">DeepSeek dispelled the myth of the dominance of American A.I. talent and demystified companies like OpenAI, said Tom Zhang, a human resources expert who has worked at several big tech companies in Silicon Valley. \u201cA group of \u2018homegrown Ph.D. graduates\u2019 from Tsinghua and Peking University outshines their counterparts from Stanford and MIT,\u201d he wrote on his WeChat timeline.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Entrepreneurs and investors said that DeepSeek demonstrated that China\u2019s A.I. sector had an edge in innovation. They also said they believed that the U.S. government\u2019s export restrictions on specialized chips from the Silicon Valley tech giant Nvidia forced Chinese companies to be more efficient.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-4\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">That was not what Washington had intended, people in China said, but that was what happened.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">DeepSeek trained its A.I. chatbot with 2,000 specialized Nvidia chips, compared with as many as the 16,000 chips used by leading American counterparts. It\u2019s also not the only Chinese company to prove the efficiency of its engineering: 01.ai, a startup founded by Kaifu Lee, a Beijing investor and entrepreneur, trained its A.I. models with computing power that cost about $3 million, the company said, compared with the $80 to $100 million OpenAI has tapped.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cIn my book AI Superpowers, I predicted that US will lead breakthroughs, but China will be better and faster in engineering,\u201d Mr. Lee, who studied artificial intelligence at Carnegie Mellon in the 1980s, <a class=\"css-yywogo\" href=\"https:\/\/x.com\/kaifulee\/status\/1883689612637548818\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">wrote<\/a> on X on Sunday. \u201cWith the recent DeepSeek releases, I feel vindicated.\u201d<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-5\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Among the most popular articles on the Chinese internet were <a class=\"css-yywogo\" href=\"https:\/\/mp.weixin.qq.com\/s?__biz=Mzk0MDMyNDUxOQ==&amp;mid=2247486864&amp;idx=1&amp;sn=dd80bd76dd937e363a5c61aa542e6d18&amp;chksm=c2e22e58f595a74ece1d9938463852ccea072ac1b8445149dbfa2dea65063f160e2f8502b379&amp;scene=21#wechat_redirect\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">two<\/a> <a class=\"css-yywogo\" href=\"https:\/\/mp.weixin.qq.com\/s\/r9zZaEgqAa_lml_fOEZmjg\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">interviews<\/a> of Mr. Liang, the reclusive chief executive, with a tech blog.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">In the interviews, Mr. Liang, who founded a quantitative stock trading firm called High-Flyer after graduating with a master\u2019s degree in artificial intelligence, came across as a geeky billionaire full of idealism and optimism. He started DeepSeek as a side project in 2023 because he wanted to explore the limits of A.I., he said.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-6\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Mr. Liang said he believed that innovation was, first and foremost, a matter of belief.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cWhy is Silicon Valley so innovative? It starts with daring to try,\u201d he said. Mr. Liang noted that when OpenAI\u2019s ChatGPT came out, China was suffering from a lack of confidence to pursue such innovation. \u201cFrom investors to major tech companies, many felt the gap was too wide,\u201d he said.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">As China\u2019s economy develops, he said, China should gradually become a contributor to tech innovation, rather than a follower.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">He said he believed that China\u2019s economic slowdown wasn\u2019t necessarily a bad thing because it could force company founders to be driven less by financial success.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cWhen many people realize that making quick money in the past was likely due to the luck of the times,\u201d Mr. Liang said, \u201cthey will become more willing to focus on genuine innovation.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Mr. Liang told the blog that he had hired mostly young graduates or even graduate students with little work experience. Every team member who worked on an A.I. model that was released last spring graduated from a Chinese university, he said.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-7\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">\u201cThe top 50 talents might not currently be in China, but perhaps we can cultivate such talent ourselves,\u201d he said, a quote that has been reposted many times. People on social media portrayed DeepSeek employees as geniuses, posting their names and citing their educational background and academic papers.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-8\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Mr. Liang, born in 1985, didn\u2019t attract much public attention until last week when he joined a group of businesspeople and academics for a <a class=\"css-yywogo\" href=\"https:\/\/tv.cctv.com\/2025\/01\/20\/VIDEP7O5fkXufWLSm3J5pwkL250120.shtml\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">meeting<\/a> with Li Qiang, China\u2019s premier.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The meeting was a sign that Mr. Liang had risen to the top, but it could also put him in an awkward position, tech executives said. The relationship between Chinese entrepreneurs and the government has been tricky after Beijing\u2019s crackdown on the tech sector in recent years. The government wants the companies to help make China a tech power less reliant on the United States. But it\u2019s also wary of the companies\u2019 influence. The crackdown <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/01\/20\/business\/tiktok-red-note-china-internet.html\" title=\"\">crushed<\/a> the promise of the Chinese internet.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">A Hong Kong investor told me that he would not invest in Chinese internet stocks as long as Xi Jinping, the Chinese leader, was in office \u2014 even with the DeepSeek breakthrough. Mr. Xi is known for his dislike of the internet sector.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-9\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Business executives hope the government can refrain from interfering with DeepSeek.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cAs is often the case with this government,\u201d Zhang Fuyu, an entrepreneur, wrote on WeChat, \u201cany promising company gets incorporated into a national strategy \u2014 receiving funding and resources but being subjected to state directives \u2014 or is directly placed under control, then DeepSeek\u2019s future prospects may be entirely stifled.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Under government regulations, A.I. models that serve consumers are subject to censorship rules. Many DeepSeek users posted photos and videos of its chatbot censoring topics including Xi Jinping, the war in Ukraine, the Cultural Revolution and the Tiananmen Square massacre.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cIf DeepSeek is truly as remarkable as claimed, so impactful that it shakes the U.S. stock market, yet it remains confined to being just an AI model with Chinese socialist characteristics,\u201d a journalist using the handle Xiaoming wrote on her Threads account, \u201cthen that would be truly tragic.\u201d<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.nytimes.com\/2025\/01\/28\/business\/deepseek-china-reaction.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Inside China, it was called the tipping point for the global technological rivalry with the United States and the \u201cdarkest<\/p>\n","protected":false},"author":1,"featured_media":2587,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[213,349,123,771,219],"class_list":["post-2586","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-artificial-intelligence","tag-china","tag-computers-and-the-internet","tag-deepseek-artificial-intelligence-co-ltd","tag-regulation-and-deregulation-of-industry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How China Is Reacting to DeepSeek Upending the A.I. 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