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This illustration photo shows the DeepSeek AI application logo on a black background displayed on a cell phone with a kaleidoscope-effect China flag in the background.

Photo Illustration by Samuel Boivin/NurPhoto via Reuters

What DeepSeek means for the US-China AI war

A Chinese startup might have achieved what many thought was impossible: matching America’s best artificial intelligence systems at a fraction of the cost.

DeepSeek's latest AI model, DeepSeek-R1, was released earlier this month. The open-source model performs as well as top models from OpenAI and Google while using just a fraction of the computing power and cost to develop; it’s also a fraction of the cost to use.

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A CPU semiconductor chip is displayed among flags of China and the US.

REUTERS/Florence Lo

US-China tech “Cold War” is on

The best fallacies stem from kernels of truth. In the case of what is being framed by some as the US-China “Cold War,” that kernel lies in the tech sector, where competition between the world’s two largest economies is fierce. The Biden administration has been increasingly clear that it is intent on slowing down China’s technological rise, and has centered its efforts toward decoupling — a low-grade form of economic warfare.

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Paige Fusco

Biden enlists Japan & Netherlands to fight US-China chips war

Japan and the Netherlands have reportedly agreed to join US export controls to stop China from getting the machines to make some of the world’s most advanced semiconductors — in part, the Biden administration claims, to make high-tech weapons. It's a major milestone in the broader US push to beat China in the race to dominate global tech with "weapons" such as the $52 billion CHIPS Act, which aims to subsidize domestic chipmaking in America and make it harder for China to access the tech.

We learn more from Eurasia Group's senior analyst Nick Reiners.

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