Deepseek and China’s dispute against the US

The dispute between the United States and the China Communist regime for the world technological leadership won a new chapter this week with the arrival of the latest Chinese Artificial Intelligence model, the Deepseek-R1. The technology, produced under the eyes of Beijing’s communist dictatorship, shook Western markets, toppled the value of US giants in the sector and even raised concerns about US national security and intellectual property theft.

The lightning popularity of DeepSeek-R1, developed by Chinese startup DeepSeek, has made Nvidia, an American giant who is the main manufacturer of AI chips, fall 17% in a single day, resulting in the highest daily loss of value of value US history market, estimated at $ 600 billion. Other giants of the industry, such as Google, Meta and Microsoft – all of the US, also recorded significant declines.

The White House has reacted to the news, with spokesman Karoline Leavitt stating that the National Security Council is reviewing the DeepSek’s strategic implications. For the government of President Donald Trump, the rise of the new Chinese competitor serves as a “warning” for the American industry. On Tuesday (28), Trump gave a speech to republican congressmen where he reinforced the need for the US to immediately restore their leadership and supremacy in the sector.

DeepSeek emerged as a China response to US leadership in the development of artificial intelligence, which was being led by giants, including the American Creator of ChatgPT, which was the most popular AI in the world. What most impressed AI experts was the supposed low cost of new Chinese technology: while American companies spend billions on training their modern models, DeepSeek-R1 would have been developed with just $ 6 million.

In addition to the price, the model is Open Source (open source), allowing any developer to use it for free to create new solutions. This directly contrasts with the current OpenAi business model and other Western companies, which offer their most complete and advanced AI versions through paid signatures and services.

Despite the supposed low cost and use of “less modern” features, billionaire and investor David Sacks, appointed as “AI and Cryptocurrency” Trump Cryptocurrency, has recently said there are “consistent evidence” that DeepSeek has unleashed knowledge of the models more advanced and paid from OpenAi. The distillation process consists of training a less advanced model from the data of a more sophisticated model, which can configure intellectual property theft.

On Wednesday (29), OpenAi said it is already investigating whether Chinese startup DeepSeek trained its new chatbot using repeatedly the artificial intelligence model created previously by the technology company based in Silicon Valley.

The company led by Sam Altman said in a statement released on Wednesday that he registered several attempts by Chinese entities to try to extract large volumes of data from his AI tools.

“It is vitally important that we work closely with the United States government to better protect the most capable models of rivals and competitors’ efforts to take American technology,” OpenAi said in a statement.

The text also directly accuses China -based companies of “constantly trying to distill the models of major United States Artificial Intelligence companies.”

On Tuesday, Altman had recognized DeepSek’s threat, but tried to keep an optimistic tone. In an X post, he called the Chinese Aia “impressive” and promised that OpenAi would respond with new releases soon.

“We will obviously deliver much better models and it is also really invigorating to have a new competitor! We will make some releases, ”he said.

The rise of DeepSeek was compared by experts to a “sputnik moment”, referring to the impact that the launch of the first Soviet satellite had on the US on the Space Race during the Cold War (1947-1991). The fact that a supposed small Chinese startup was able to develop a model considered efficient without the same resources as US companies raised questions from investors about the actual US technological advantage, which seriously impacted the market value of US giants.

The US government restrictions, still in the Joe Biden era, to exports of advanced chips to China, including the modern H100 of Nvidia, aimed to prevent the communists’ advances in the field of artificial intelligence. However, still, DeepSeek has managed to create a competitive model allegedly using less advanced versions of these chips, the H800, which has raised serious questions about the effectiveness of these American sanctions and the fear of how Beijing can continue in this sector, despite barriers technological.

One of the main points of concern about DeepSeek is the possible use of AI for state control and surveillance. The technology was developed in the city of Hangzhou, in the territory of China, which has a strong digital monitoring system to maintain the power of the communist regime. There are also concerns about the collection and storage of data by AI, since, according to the lawyer specializing in data leakage Brent Arnold told state Canadian state CBCthe company explicitly states in its privacy policy that users’ information is stored on servers in China, under jurisdiction of the XI Jinping regime.

“The difference between this and another company that would have this data is that now the Chinese government also has it,” warned Arnold. He points out that while western companies like Google and Meta also collect large data of data, there are control and balance mechanisms in the US to prevent this information. In the case of China, however, the Chinese Communist Party (CCP) can freely access this data for surveillance and even repression.

“With regard to the United States, we assume that the government acts in good faith when investigating and requesting information, as there is a legitimate basis for it,” he said.

Although Chinese AI is open source, there are concerns about censorship mechanisms embedded in technology. As western models, such as chatgPT, are criticized only by ideological biases and restrictions on certain topics, DeepSeek has even more rigid prior censorship, which filters information that contradicts the interests of the Beijing regime, as subjects about the massacre of the square of Heavenly Peace, Taiwan’s independence, and the repression of the Uigures in Xinjiang, as well as criticism and nicknames – as the simple comparison with the Pooh Bear – made to communist dictator XI Jinping.

Companies operating in the financial market, such as French insurer Coface, warned that the emergence of DeepSeek can trigger a reassessment of billionaire investments in AI.

“In the short term, markets should prepare for a period of volatility as investors reevaluate the value of AI -related companies, including giants such as Nvidia,” the insurer said in an analysis published on her site.

By 2024, US companies like OpenAi, Google and Meta spent hundreds of billions of dollars on the development of new AI models. Investors now question whether these high costs are still justifiable in the rise of supposedly cheaper competitors.

What is clear is that, from now on, the Cold War of Artificial Intelligence has entered a new phase and the coming years will be crucial to define whether the US will be able to maintain its leadership or if Beijing, controlled by communists, will take the lead at Revolution of technology that will probably guide the future.