DeepSeek Shows China Playbook for Even Bigger US Shock on Chips
Jan 29, 2025 - financialpost.com
The article discusses the success of DeepSeek, a Chinese company that has developed a new AI model, potentially signaling a significant technological breakthrough for China in the face of US export restrictions. DeepSeek's achievement highlights China's advantages, such as a large pool of skilled software engineers, a vast domestic market, and government support. Despite US bans on advanced AI chips and equipment, China is making strides in AI and chip production, although it remains behind in hardware capabilities compared to the US. The development has prompted discussions on the need for the US to enhance its tech capabilities and engineer training to maintain its competitive edge.
DeepSeek's progress is seen as a positive step for China's shift towards high-tech growth, but it may also lead to increased US efforts to restrict China's access to advanced technology. The article notes that while China is still catching up in chipmaking, companies like Huawei and others are making advancements despite export controls. The success of DeepSeek's AI model, developed without access to the best chips, underscores the potential for disruptive technology and the rapid pace of innovation.
Key takeaways:
DeepSeek's new AI model demonstrates China's potential to produce cutting-edge chips despite US export curbs.
China's advantages include a large pool of skilled software engineers, a vast domestic market, and government support.
US export controls have hindered China's access to advanced AI chips, but Chinese companies are making progress in chipmaking.
DeepSeek's success highlights the need for the US to enhance its efforts in AI innovation and engineer training.
