A Chinese startup just showed every American tech company how quickly it's catching up in AI

Chinese startup DeepSeek has released a new AI reasoning model that appears to rival the abilities of a frontier model from ChatGPT maker OpenAI.

Jan 22, 2025 - 12:09
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A Chinese startup just showed every American tech company how quickly it's catching up in AI
OpenAI CEO Sam Altman addresses the Station F in Paris
A new AI model from China's DeepSeek rivals OpenAI's o1.
  • An AI startup in China just showed how it's closing the gap with America's top AI labs.
  • Chinese startup DeepSeek released a new AI model on Monday that appears to rival OpenAI's o1.
  • Its reasoning capabilities have stunned top American AI researchers.

Donald Trump started his new presidency by declaring America must lead the world. He just got a warning shot from an AI crack team in China that is ready to show US technological supremacy is not a given.

Meet DeepSeek, a Chinese startup spun off from a decade-old hedge fund that calculates shrewd trades with AI and algorithms. Its latest release, which came on Trump's inauguration day, has left much of America's top industry researchers stunned.

In a paper released Monday, DeepSeek unveiled a new flagship AI model called R1 that shows off a new level of "reasoning." Why it has left such a huge impression on AI experts in the US matters.

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