The Real Threat of Chinese AI

Jared Dunnmon

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In the two months since a little-known Chinese company called DeepSeek released a powerful new open-source AI model, the breakthrough has already begun to transform the global AI market. DeepSeek-V3, as the company’s open large language model (LLM) is called, boasts performance that rivals that of models from top U.S. labs, such as OpenAI’s ChatGPT, Anthropic’s Claude, and Meta’s Llama—but at a tiny fraction of the cost. This has given developers and users around the world access to leading-edge AI at minimal expense. In January, the company released a second model, DeepSeek-R1, that shows