Chinese AI Firm DeepSeek Stuns Silicon Valley with Advanced Model

CNChina|

Chinese artificial intelligence company DeepSeek has captivated Silicon Valley following its launch of a powerful AI model that challenges U.S. technological dominance. Despite U.S. restrictions on exporting advanced chips to China, DeepSeek's founder Liang Wenfeng revealed that the company had stockpiled between 10,000 and 50,000 Nvidia A100 chips before the ban. This inventory allowed DeepSeek to develop a model at a fraction of the cost compared to American counterparts.

According to experts, while the U.S. government's export controls posed significant challenges, they have also prompted innovation within the Chinese tech sector. Marina Zhang, an associate professor at the University of Technology Sydney, noted that these restrictions have driven companies like DeepSeek to maximize resources and foster creativity.

Liang, 40, is hailed as an "AI hero" in China, leading a team of fewer than 140 engineers—most sourced from elite universities. The release coincided with heightened tensions in U.S.-China relations, signaling Beijing's resolve to position itself as a tech superpower. However, the long-term efficacy of DeepSeek amid new restrictions remains uncertain.

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