Overview

• DeepSeek's R1 chatbot rivals US models like ChatGPT in performance while requiring significantly less computational power and training costs.
• US-based OpenAI accuses DeepSeek of using its models for training through a process called knowledge distillation, though evidence remains unpublished.
• The release of R1 caused a temporary drop in US tech stock prices, highlighting concerns over China's growing influence in AI innovation.
• Critics raise concerns about DeepSeek's data practices, with European regulators investigating potential violations of privacy laws and data transfers to China.
• DeepSeek's reliance on censorship for politically sensitive topics, aligned with Chinese government policies, limits its appeal in Western markets.