How DeepSeek, the Chinese competitor to American AI companies OpenAI, Google and Microsoft, solves one of the biggest ‘China problem’

The Chinese startup DeepSeek has unveiled a new AI system, DeepSeek-V3, demonstrating capabilities comparable to leading chatbots from OpenAI and Google. This achievement is significant in itself, but even more notable is DeepSeek’s efficient use of computing resources. According to a report in NewYork Times, DeepSeek’s engineers reported using significantly fewer specialized computer chips, crucial components in AI training, than their American counterparts. These chips are central to the technological competition between the U.S. and China, with the U.S. imposing export restrictions to maintain its AI leadership. However, DeepSeek’s success highlights potential unintended consequences of these restrictions, as Chinese researchers have been driven to innovate with readily available resources.