The success will come with heightened scrutiny, both from Western governments with long-held suspicions about Chinese technology, but also from Beijing, whose stern regulatory crackdown on the sector, though eased in 2022, still has a chilling effect.
Howard Lutnick, Trump’s nominee to lead the Commerce Department, slammed China for allegedly using U.S.-manufactured technology to compete with American artificial intelligence (AI) firms after Chinese AI startup DeepSeek took the internet and stock market by storm.
The stock market plummeted this week after a Chinese company showed it could do more with less.
In demonstrating its ability to innovate around American export restrictions, DeepSeek has raised doubts as to whether access to piles of cutting-edge semiconductors and related equipment is as important as previously thought when it comes to training AI models.