DeepSeek: China’s AI Rise

The R1 model, developed by the Chinese AI company DeepSeek in just two months and with a low budget, has caused a huge stir by leaving its US-based competitors behind in terms of performance and cost. While global technology stocks fell with the launch of the R1, DeepSeek’s app became the most downloaded app on the App Store. These developments challenge the US’s dominance in the field of AI and show that global competition is increasing. DeepSeek’s success also brings into question the R&D investments of US companies. As a result, DeepSeek’s rapid rise indicates that the balance of power in the AI sector is changing.