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China's DeepSeek AI Model Disrupts Global Tech Landscape

DeepSeek's low-cost, high-performance AI challenges U.S. dominance, raising privacy, geopolitical, and economic concerns.

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SAN ANSELMO, CALIFORNIA - JANUARY 27: In this photo illustration, the DeepSeek app is displayed on an iPhone screen on January 27, 2025 in San Anselmo, California. Newly launched Chinese AI app DeepSeek has surged to number one in Apple's App Store and has triggered a sell-off of U.S. tech stocks over concerns that Chinese companies' AI advances could threaten the bottom line of tech giants in the United States and Europe. (Photo Illustration by Justin Sullivan/Getty Images)
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Overview

  • DeepSeek, a Chinese AI app, achieved over one million downloads within a week, rivaling OpenAI's models at a fraction of the cost.
  • Experts warn that DeepSeek's data collection practices and storage on Chinese servers raise significant privacy and security concerns for Western users.
  • The app's release has disrupted global markets, erasing $1 trillion in U.S. stock value and sparking debates over China's growing tech influence.
  • DeepSeek's open-source AI model claims to match OpenAI's performance while using fewer resources, though some experts question the accuracy of its cost and development claims.
  • The rise of DeepSeek highlights the intensifying U.S.-China competition in AI and robotics, with implications for economic and geopolitical power dynamics.