While the world was focused on the actions of the Trump administration in its first week, a little-known Chinese startup startled the tech world last week with the release of an open source artificial intelligence tool that for a fraction of cost and resources of American competitors such as ChatGPT matches and in some cases outperforms its American rivals.
The company, DeepSeek, has gone even further, making its eponymous tool available for download for free. Only those seeking to use the company's application programming interface―something which allows the tool to interface more easily with existing programs—must pay a fee that is only about 3 percent of that of other tools.
DeepSeek sheds light on two important issues. First, U.S. export controls on advanced computer technology, both hardware and software, are meaningless against a rival that has a highly educated population with the training and tools to work around such controls. The lack of resources essentially forced the DeepSeek team to solve problems related to efficiency that they would not have bothered to tackle if U.S. technology had been available. The team ended up producing a superior, much more cost-effective product as a result. In my December 2024 piece "U.S. China trade war: Is the latest battle really tit for tat?" I wrote: