How China’s cheap AI DeepSeek beat odds to stun the world…from dig at Trump to market COLLAPSE & ‘wake up call’ to West
How China’s cheap AI DeepSeek beat odds to stun the world…from dig at Trump to market COLLAPSE & ‘wake up call’ to West
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CHINA'S AI app DeepSeek sent shockwaves through the tech industry and global markets when it stormed to the front of the AI race. Donald Trump said the West must take the app's blistering popularity as a "wake up call" as a trillion dollars got wiped from the US tech market in one fell swoop.
![[Smartphone displaying the DeepSeek AI chatbot interface.]](https://www.the-sun.com/wp-content/uploads/sites/6/2025/01/newspress-collage-p93tkw581-1737977257321.webp?strip=all&w=620)
DeepSeek is a large language model that can generate human-like responses to prompts, just like the famous ChatGPT. The app is powered by AI software called DeepSeek-V3, which its researchers claim was developed for less than $6million. This is much less than the billions international competitors have spent on their own software, though the figure has been disputed by others in the industry.
![[Illustration of Xi Jinping with statements about human rights, Taiwan, and internet control in China.]](https://www.thesun.co.uk/wp-content/uploads/2025/01/JB_27_01_CHINA-AI-DEEPSEEK_COMP_a55d6e.jpg?strip=all&w=960)
The company boasted their app has "performance on par with" ChatGPT when it comes to maths, coding and writing responses. AI models are powered by advanced chips, and since 2021 the US government has restricted the sale of these to China in order to stunt progress.
![[Donald Trump and Xi Jinping meeting at the G20 summit.]](https://www.the-sun.com/wp-content/uploads/sites/6/2025/01/u-s-president-donald-trump-965459009.jpg?strip=all&w=960)
To get around the supply problem, Chinese developers have been collaborating and experimenting with new approaches. This process has led to models that require much less computing power than before and that can be produced far more cheaply. DeepSeek, cheekily unveiled to the world on Trump's inauguration day, has blown a hole in the AI industry - seemingly against the odds.
![[Man in glasses holding up a computer chip.]](https://www.the-sun.com/wp-content/uploads/sites/6/2025/01/500-dropped-dow-finished-higher-967184323_846598.webp?strip=all&w=620)
