Talk of blow to American AI dominance is greatly exaggerated

The arrival of China’s DeepSeek has led to concerns about the US losing its edge in the AI race. But these fears are overblown.

Earlier this month, Chinese artificial intelligence lab DeepSeek released R1, an open-source AI reasoning model. The model seemed to match the capabilities of OpenAI’s ChatGPT, Meta’s Llama and Google’s Gemini, while costing just a fraction to train. This is being widely heralded as AI’s centre of power shifting away from the US. 

DeepSeek says it spent less than $6 million in raw computing power to build the system. There is a debate about the exact figure, with Scale AI CEO Alexandr Wang even claiming that the Chinese lab has access to tens of thousands of Nvidia chips. But the headline …

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Sethu Pradeep

Sethu writes on all things technology at The Morning Context. He previously worked as a senior sub-editor at Indian Express.

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sethu@mailtmc.com

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