DeepSeek’s disruption signals that the U.S. needs more competition, not Big Tech dominance, to be the world's AI leader

SINGAPORE—The unexpected success of Chinese AI startup DeepSeek has revealed cracks in U.S. efforts to contain China’s technology ambitions, challenging both Washington and Silicon Valley to rethink how best to preserve American supremacy.

The start-up had become a key player in the “Chinese Large-Model Technology Avengers Team” that would counter US AI dominance, said another. China’s delight, however, spelled pain for several giant US technology companies as investors questioned whether DeepSeek’s breakthrough undermined the case for their colossal spending on AI infrastructure.

The launch of Chinese AI DeepSeek has prompted a wide range of responses from Silicon Valley, with many considering the competition a threat to U.S. control over the industry. Newsweek reached out to DeepSeek and the White House for comment via email.