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DeepSeek AI Launch Fuels Global AI Race and Raises Security Concerns

China's low-cost AI disrupts markets, sparks innovation, and prompts scrutiny over national security risks.

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FILE - The smartphone apps DeepSeek page is seen on a smartphone screen in Beijing, Tuesday, Jan. 28, 2025. (AP Photo/Andy Wong, File)
The Deepseek logo is seen in this illustration taken Jan. 27, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
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Overview

  • DeepSeek's R1 model matches OpenAI's top-tier AI performance at a fraction of the cost, claiming to have been developed for just $5.6 million, though experts question this figure.
  • The open-source nature of DeepSeek has accelerated AI adoption, with developers integrating the model for its affordability, transparency, and ease of customization.
  • Concerns over DeepSeek's ties to the Chinese Communist Party have led to national security debates, with U.S. lawmakers introducing legislation to ban its use on government devices.
  • Security researchers have identified vulnerabilities in DeepSeek, including potential data routing to China-controlled servers and embedded censorship mechanisms.
  • The competition spurred by DeepSeek has driven down costs across the AI industry, with major players like OpenAI and Google releasing cheaper and more advanced models in response.