12 February 2025

The Crisis in Western AI Is Real

CHARLES FERGUSON

The release of the Chinese DeepSeek-R1 large language model, with its impressive capabilities and low development cost, shocked financial markets and led to claims of a “Sputnik moment” in artificial intelligence. But a powerful, innovative Chinese model achieving parity with US products should come as no surprise. It is the predictable result of a major US and Western policy failure, for which the AI industry itself bears much of the blame.

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