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How China’s new AI model DeepSeek is threatening U.S. dominance


An AI lab out of China has ignited panic in Silicon Valley after releasing impressive AI models more cheaply and with less-powerful chips than U.S. AI giants.

The new developments have raised alarms on whether America's global lead in artificial intelligence is shrinking and called into question big tech's massive spend on building AI models and data centers. In a set of third-party benchmark tests, DeepSeek's model outperformed Meta's Llama 3.1, OpenAI's GPT-4o and Anthropic's Claude Sonnet 3.5 in accuracy ranging from complex problem-solving to math and coding. DeepSeek also had to navigate the strict semiconductor restrictions that the U.S. government has imposed on China, cutting the country off from access to the most powerful chips, like Nvidia's H100s.

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