DeepSeek Narrows China's AI Gap with US to Three Months

Chinese startup DeepSeek has made significant strides in artificial intelligence, unveiling its upgraded model, DeepSeek-V3-0324, which showcases improved reasoning and coding capabilities compared to earlier versions. This development intensifies competition with U.S. tech giants like OpenAI and Anthropic. According to Lee Kai-fu, CEO of 01.AI, the gap between China's AI capabilities and those of the U.S. has narrowed to just three months in certain areas, challenging previous assumptions about the limitations imposed by U.S. sanctions. DeepSeek's innovation, particularly its cost-effective use of less advanced chips, has positioned it as a formidable player in the global AI landscape. The rise of DeepSeek reflects a broader trend in China's tech sector, which has rapidly entered the generative AI race following the launch of OpenAI's ChatGPT. These advancements raise concerns among investors regarding the financial viability of extensive AI investments by Western tech firms.