DeepSeek Shows China Playbook for Even Bigger US Shock on Chips

Jan. 28, 2025, 11:23 PM UTC

The success of DeepSeek’s new AI model points to how China might eventually achieve an even bigger technological breakthrough in the face of US export curbs: Producing its own cutting-edge chips.

As tech leaders and politicians marvel at DeepSeek’s apparent ability to build an innovative AI model without spending nearly as much as rivals in the US, a development that roiled markets on Monday, the question now is how exactly the Hangzhou-founded company pulled it off — and what it means for American efforts to stay ahead of China in the tech race.

The DeepSeek app
Photographer: Andrey Rudakov/Bloomberg

While much remains unclear, such as ...

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