Politico January 27, 2025
By Christine Mui

A little-known Chinese artificial intelligence startup shook the tech world this weekend by releasing an OpenAI-like assistant, which shot to the No.1 ranking on Apple’s app store and caused American tech giants’ stocks to tumble.

From Washington’s perspective, the news raised an immediate policy alarm: It happened despite consistent, bipartisan efforts to stifle AI progress in China.

Both President Donald Trump and former President Joe Biden have made global competition — and, specifically, boxing out China — the centerpiece of their tech and AI policies. Somehow, a small and nimble Chinese company just jumped ahead anyway.

In tech terms, what freaked everyone out about DeepSeek’s R1 model is that it replicated — and in some cases, surpassed — the performance...

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