But the story of DeepSeek also reveals just how much Chinese technological development continues to depend on the United States. DeepSeek used chips from the U.S. giant Nvidia to create its model, and, as it turns out, may have also tapped American data to train it. Washington can capitalize on that advantage to choke off Chinese tech firms.

By bno - Taipei Bureau DeepSeek, the Chinese AI start-up, has generated significant attention since its launch of the R1 chatbot in January. Despite a claimed smaller budget than industry giants, the company asserts that its AI can rival those from the US at a fraction of the cost.

The meteoric rise of DeepSeek—the Chinese AI startup now challenging global giants—has stunned observers and put the spotlight on China’s AI sector. Since ChatGPT’s debut in 2022, the country’s tech ecosystem has been in relentless pursuit of homegrown alternatives, giving rise to a wave of startups and billion-dollar bets.