Among the lessons of the DeepSeek saga is never underestimate Chinese ingenuity. At a time when Silicon Valley has been squabbling about free access to Open AI’s Chat GPT and ploughing billions into investment, DeepSeek founder Liang Wenfeng has done it on the cheap, backed by a native hedge fund, High-Flyer.
Should we be surprised? When it comes to tech, China often has an edge over strategic rivals. Tik Tok has become the social media site of choice for younger generations across the globe. That explains why the Americans are determined that the US arm should be divested. Donald Trump says Microsoft is an interested buyer.
In free-market economies, competition provides important incentive and it is hard to think that the Silicon Valley giants will sit on their laurels and allow Deep-Seek to dominate the space with cheaper smart chips. Brave new world: With its impressive new Chatbot DeepSeek China appears to have dramatically taken the lead in the global AI race.
The obsession of Wall Street investors with high-tech, which has driven bubble-like valuations, almost certainly needed hosing down. Sputnik was, of course, the warning to John F Kennedy that the US needed a mission to win the space race. Israel’s Iron Dome is inspiring America to build on much mocked Reagan-era ‘Star Wars’ aerospace to create a shield against ballistic, hypersonic missiles.
