The rise of DeepSeek—a Chinese-made artificial intelligence model—has taken the tech world by surprise and shock alike. It has become the most downloaded free app on the Apple Store. Experts and investors are still struggling to wrap their head around its surge. DeepSeek’s rapid success has also sent shockwaves through the stock market. US firm Nvidia lost nearly USD 600 billion in market value in a single day—the worst one-day loss in US history. DeepSeek has claimed to be more efficient when compared to industry standards. Unlike industry leaders like OpenAI, it was reportedly built at a fraction of the cost by using fewer advanced chips. This development has cast a shadow of doubt over Washington’s restrictions on AI-related exports to China. The US has tried to limit Beijing’s access to cutting-edge semiconductor technology, but DeepSeek’s success suggests that China is finding its way around these barriers.
Introduction of technology has always come as a disruption in society. It takes time for epoch-making technological innovations to settle down in society. Realities take shape in the transition phase, and the ultimate outcome depends upon the struggle of various stakeholders to get an edge over others. Artificial Intelligence is perhaps the greatest disrupter of this age. Unlike previous technologies that served as an extension of any particular human attribute like sight, sound or movement, AI-powered Generative AI acts as an extension of entire human agency—including consciousness. Global superpowers have now engaged in a battle to maintain a lead in this era-defining technology. Just as the world was trying to make sense of OpenAI’s ChatGPT, the launch of DeepSeek AI by a rival country to the US has intensified the race, bringing newer avenues on the horizon. Chinese President Xi Jinping has made AI a top priority as the country is shifting from traditional manufacturing to high-tech industries. DeepSeek’s rapid rise is being celebrated in China as a victory for homegrown innovation. However, the AI model has faced criticism for its censorship practices as well.
The model’s ability to compete with Western AI tools has also raised security concerns globally. India is closely monitoring the app for potential data privacy risks. Reports suggest that user data may be stored on servers in China, leading to fears about how this information could be used. Indian officials are evaluating whether DeepSeek violates national security policies, with the possibility of regulatory action if necessary. The US and Australia have also expressed concerns about DeepSeek’s privacy policies and security implications. The broader debate around AI safety has intensified, with experts warning that the global AI race could lead to rushed developments at the cost of safety. Prominent AI researchers have cautioned that intense competition between China and the US could encourage companies to focus on staying ahead rather than prioritising security.
The growing capabilities of AI models also bring risks of misuse. Studies have highlighted how advanced AI can be exploited for cyberattacks, deepfake content, and even bioweapon development. Governments worldwide are struggling to regulate these risks while allowing AI innovation to thrive. To sum up, DeepSeek’s success challenges the notion that high-end chips are essential for AI breakthroughs. It also raises doubts about US export controls, and fuels concerns about data privacy and national security. While China is celebrating this leap forward, the rest of the world is left weighing the risks and implications of a new AI powerhouse.