{"id":13529,"date":"2025-02-03T08:00:53","date_gmt":"2025-02-03T13:00:53","guid":{"rendered":"https:\/\/blogs.shu.edu\/thediplomaticenvoy\/?p=13529"},"modified":"2025-02-02T15:10:53","modified_gmt":"2025-02-02T20:10:53","slug":"how-u-s-tech-was-caught-unaware-by-chinese-ai","status":"publish","type":"post","link":"https:\/\/blogs.shu.edu\/thediplomaticenvoy\/2025\/02\/03\/how-u-s-tech-was-caught-unaware-by-chinese-ai\/","title":{"rendered":"How U.S. Tech was Caught Unaware by Chinese AI"},"content":{"rendered":"<p><span style=\"font-weight: 400\">Jaxon Carey<\/span><\/p>\n<p><i><span style=\"font-weight: 400\">Staff Writer<\/span><\/i><\/p>\n<div class=\"ose-gettyimages ose-uid-5a0819a222ea5f4aed6442489ca30f31 ose-embedpress-responsive\" style=\"width:723px; height:623px; max-height:623px; max-width:100%; display:inline-block;\" data-embed-type=\"GettyImages\"><a id=\"5k4Di1YURN5eoSKaUgtcbA\" class=\"gie-single\" href=\"https:\/\/www.gettyimages.com\/detail\/2195830358\" target=\"_blank\" style=\"color:#a7a7a7;text-decoration:none;font-weight:normal !important;border:none;display:inline-block;\">Embed from Getty Images<\/a><script>window.gie=window.gie||function(c){(gie.q=gie.q||[]).push(c)};gie(function(){gie.widgets.load({id:\"5k4Di1YURN5eoSKaUgtcbA\",sig:\"MSc9YRtJvL38RKG_poXRF0Q1FcCYbTToFa--BBotpFU=\",w:\"594px\",h:\"396px\",items:\"2195830358\",caption: false ,tld:\"com\",is360: false })});<\/script><script src=\"\/\/embed-cdn.gettyimages.com\/widgets.js\" charset=\"utf-8\" async><\/script><\/div>\n\t\t\t<script>\n\t\t\t\tif (typeof gie === 'function') {\n\t\t\t\t\tgie(function(){\n\t\t\t\t\t\tvar iframe = document.querySelector('.ose-embedpress-responsive iframe');\n\t\t\t\t\t\tif(iframe && !iframe.getAttribute('title')){\n\t\t\t\t\t\t\tiframe.setAttribute('title', '')\n\t\t\t\t\t\t}\n\t\t\t\t\t});\n\t\t\t\t}\n\t\t\t<\/script>\n\t\t\n<p><span style=\"font-weight: 400\">The day is January 20, 2025. It was a completely normal morning, until DeepSeek-R1 was published. In one week, the AI world went from calm to a storm of panic. War rooms were drafted, stocks crashed, and tech companies watched $1 billion disappear. The U.S. has been taken by surprise by Chinese technology advancement, and there are dire consequences for this.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">According to <\/span><a href=\"https:\/\/fortune.com\/2025\/01\/27\/mark-zuckerberg-meta-llama-assembling-war-rooms-engineers-deepseek-ai-china\/\"><span style=\"font-weight: 400\">Fortune<\/span><\/a><span style=\"font-weight: 400\">, Meta, the owner of Instagram and a competitor in the AI arms race, is \u201cscrambling multiple \u2018war rooms\u2019 of engineers\u201d to figure out how DeepSeek\u2019s AI is beating out every other AI research competitor. These war rooms are reportedly attempting to determine how the Chinese hedge fund High-Flyer Capital managed to release an AI chatbot, named R1, that can perform equally as good as ChatGPT and at a fraction of the cost. Meta and other AI research companies are all asking the same questions. How did High-Flyer reduce the cost of training and running DeepSeek? What data was used to train this model? And finally, how can Meta (and others) restructure their AI models based on DeepSeek?<\/span><\/p>\n<p><span style=\"font-weight: 400\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span> <span style=\"font-weight: 400\">To compare some statistics, DeepSeek-R1 took $6 Million to train, was running on old generation hardware, and according to<\/span><a href=\"https:\/\/www.cnn.com\/2025\/01\/28\/business\/deepseek-ai-nvidia-nightcap\/index.html\"><span style=\"font-weight: 400\"> CNN Business<\/span><\/a><span style=\"font-weight: 400\">, only needs 2000 Nvidia chips. Compare that to ChatGPT\u2019s o1 model, which took 20x the resources to train, and the difference in production is clear. According to <\/span><a href=\"https:\/\/www.forbes.com\/sites\/petercohan\/2025\/01\/26\/nvidia-stock-may-fall-as-deepseeks-amazing-ai-model-disrupts-openai\/\"><span style=\"font-weight: 400\">Forbes<\/span><\/a><span style=\"font-weight: 400\">, Blaine Vess, founder of Immeasurable and co-founder of Student Brands, stated that DeepSeek outperforms OpenAI in two key statistics. DeepSeek-R1 has a 97.3% accuracy in high level mathematics, all while it costs only $0.15 per million tokens. OpenAI operates at a cost of $15 per million tokens. Simply put, China\u2019s DeepSeek AI has shaken the AI world and upset ChatGPT, reports <\/span><a href=\"https:\/\/blog.ailab.sh\/2025\/01\/the-ai-revolution-has-no-moat-why.html\"><span style=\"font-weight: 400\">AILab<\/span><\/a><span style=\"font-weight: 400\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">This upheaval sent Nvidia stocks into freefall, with $600 billion being wiped from their market worth in one day. The Chinese start-up has left the previously dominant U.S. tech industry reeling according to <\/span><a href=\"https:\/\/www.reuters.com\/technology\/chinas-deepseek-sets-off-ai-market-rout-2025-01-27\/\"><span style=\"font-weight: 400\">Reuters<\/span><\/a><span style=\"font-weight: 400\">. Nearly $1 trillion total has been shed from tech companies across the U.S. and E.U. According to <\/span><a href=\"https:\/\/markets.businessinsider.com\/news\/stocks\/tech-stock-sell-off-deepseek-ai-chatgpt-china-nvidia-chips-2025-1\"><span style=\"font-weight: 400\">Business Insider<\/span><\/a><span style=\"font-weight: 400\">, \u201closses gathered. . . after DeepSeek became the most downloaded app on Apple&#8217;s App Store in the US on Monday.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span> <span style=\"font-weight: 400\">This is a broader reflection of the consequences of ignoring China\u2019s rise. <\/span><a href=\"https:\/\/globalnews.ca\/news\/10981472\/deepseek-shock-u-s-tech-stocks-recover\/\"><span style=\"font-weight: 400\">Global News<\/span><\/a><span style=\"font-weight: 400\"> reports, \u201cDeepSeek bursting on to the AI scene has upended the industry\u2019s perception that China was years behind. . . US rivals.\u201d It wasn\u2019t just tech investors who were taken by surprise, with <\/span><a href=\"https:\/\/www.reuters.com\/technology\/artificial-intelligence\/white-house-evaluates-china-ai-app-deepseeks-affect-national-security-official-2025-01-28\/\"><span style=\"font-weight: 400\">Reuters<\/span><\/a><span style=\"font-weight: 400\"> quoting President Donald Trump as saying DeepSeek was \u201ca wake-up call for our industries that we should be laser-focused on competing to win.\u201d The United States has been falling behind in technology research for far too long. Back in March of 2023, <\/span><a href=\"https:\/\/www.techspot.com\/news\/97802-china-leads-us-37-out-44-critical-technologies.html\"><span style=\"font-weight: 400\">TechSpot<\/span><\/a><span style=\"font-weight: 400\"> reports that the Australian Strategic Policy Institute claimed that China holds the lead in 37 crucial and strategic technologies, with the U.S. holding the lead in only seven. China has just overtaken AI.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span> <span style=\"font-weight: 400\">The future of AI is anything but certain. Newly appointed \u201cAI czar\u201d David Sacks has posted on the social media platform X (formerly Twitter) that \u201cThe AI race will be very competitive.\u201d This comes as President Donald Trump, according to <\/span><a href=\"https:\/\/apnews.com\/article\/trump-ai-openai-oracle-softbank-son-altman-ellison-be261f8a8ee07a0623d4170397348c41\"><span style=\"font-weight: 400\">The Associated Press<\/span><\/a><span style=\"font-weight: 400\">, is putting $500 billion into Project Stargate, which is focused on spurring more development and research of AI systems in the U.S. The consequences of ignoring Chinese technological development have been disastrous, but with recognition from senior federal officials and entrepreneurs alike, this is one mistake the U.S. is hoping not to make again.<\/span><\/p>\n<p>Image courtesy of <em>Getty Images<\/em>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The day is January 20, 2025. It was a completely normal morning, until DeepSeek-R1 was published. In one week, the AI world went from calm to a storm of panic. War rooms were drafted, stocks crashed, and tech companies watched $1 billion disappear. The U.S. has been taken by surprise by Chinese technology advancement, and there are dire consequences for this.\u00a0<\/p>\n","protected":false},"author":5615,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2845,382],"tags":[393,394,514,2267,2585,2636,2858,2859,2860],"class_list":["post-13529","post","type-post","status-publish","format-standard","hentry","category-2845","category-international-news","tag-china","tag-economics","tag-united-states","tag-stock-market","tag-artificial-intelligence","tag-meta","tag-nvidia","tag-deepseek","tag-chatgpt"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How U.S. Tech was Caught Unaware by Chinese AI - The Diplomatic Envoy<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blogs.shu.edu\/thediplomaticenvoy\/2025\/02\/03\/how-u-s-tech-was-caught-unaware-by-chinese-ai\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How U.S. Tech was Caught Unaware by Chinese AI - The Diplomatic Envoy\" \/>\n<meta property=\"og:description\" content=\"The day is January 20, 2025. It was a completely normal morning, until DeepSeek-R1 was published. In one week, the AI world went from calm to a storm of panic. War rooms were drafted, stocks crashed, and tech companies watched $1 billion disappear. 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