For decades, China has been accused by the United States and several of its allies of economic espionage and intellectual property (IP) theft. It was claimed that Chinese IP theft has cost the U.S. about US$225 billion to US$600 billion a year. Besides stealing IP, China was also accused of demanding technology transfers in exchange for market access.
However, if it’s true that China only knows how to steal and does not know how to innovate and invent, exactly who invented paper-making, printing, gun-powder and the compass in the first place? Other ancient Chinese inventions included alcohol, mechanical clock, tea production, umbrella, acupuncture, iron smelting, porcelain, silk, bronze, kite, seed drill, and even earthquake detector.
And if indeed the U.S. is leading the technology, why were they so afraid of Huawei’s 5G technology and Chinese EVs (electric vehicles) that the Americans are instigating – even threatening – allies to boycott, block and ban the Chinese 5G and EVs from entering their markets? Hilariously, Biden and Trump were trying to ban WeChat and TikTok too,despite claims of Chinese IP theft.
Yes, naughty China had stolen so much Western technology that the Chinese have become not only the leader in 5G and EVs, but also in short-video and hypersonic missile. The U.S., supposedly the leader in virtually every pillar, experienced another “Sputnik moment” when its artificial intelligence (AI) leadership was challenged by Chinese DeepSeek on Monday (January 27).
The sudden emergence of DeepSeek, a competitor to OpenAI and its ChatGPT tool, saw US$1 trillion wiped out from Nasdaq Composite in one day. Even Nvidia, a leading maker of the computer chips that power AI models, suffered the biggest fall in U.S. stock market history when its shares fell 17% – wiping nearly US$600 billion, while Google’s parent company lost US$100 billion and Microsoft US$7 billion.
Powered by the open source DeepSeek-V3 model, DeepSeek, a Chinese AI chatbot was made at a fraction of the cost (US$6 million) – significantly less than the billions spent by rivals. Even though it was launched last week, it has already become the most downloaded free app in the U.S. and UK, raising questions about the future of America’s AI dominance. But it was just the beginning.
The arrival of DeepSeek was shocking as the U.S. thought it has successfully crippled China’s technology by restricting the sale of the advanced chip technology that powers AI to China. But without supplies of imported advanced chips, Chinese AI developers were forced to share their work with each other and experimented with new approaches to the technology. This has resulted in AI models that require far less computing power than before.
Nvidia’s most advanced chips – H100s – have been banned from export to China since September 2022 thanks to US sanctions. Nvidia then developed the less powerful H800 chips for the Chinese market, but they were also banned from export to China last October. DeepSeek’s success at building an advanced AI model without access to the most cutting-edge US technology means the sanctions have backfired.
Crucially, it also means that they cost less than previously thought possible, which could create chaos in the industry. The company, founded by entrepreneur Liang Wenfeng who runs hedge fund “High-Flyer Capital and uses AI to identify patterns in stock prices, said that DeepSeek-R1 was of “performance on par with” one of OpenAI’s latest models when used for tasks such as maths, coding and natural language reasoning.
Initially, 40-year-old Liang bought Nvidia chips in 2021 to develop AI models as a hobby, bankrolled by his hedge fund. In 2023, he founded DeepSeek in the eastern Chinese city of Hangzhou. The company is purely focused on research rather than commercial products – DeepSeek and its codes can be downloaded for free, while DeepSeek’s models are also cheaper to operate than OpenAI’s.
Caught off-guard by their rival’s technological achievement, the U.S. was both unimpressed and upset. DeepSeek now raises doubts over the necessity for hefty investment in AI infrastructure such as chips and the so-called market-leading role of US tech companies in AI. Analysts at US investment bank Goldman Sachs already raised the alarm over AI spending last year in a note – “Gen AI: too much spending, too little benefit?”
US President Donald Trump, who used to belittle Chinese technology, said DeepSeek should be a “wake-up call for our industries that we need to be laser-focused on competing to win”. Meanwhile, Silicon Valley venture capitalist and Trump adviser Marc Andreessen described DeepSeek-R1 as “AI’s Sputnik moment”, a reference to the satellite launched by the Soviet Union in 1957 that shocked the U.S.
However, OpenAI chief executive Sam Altman praised DeepSeek, saying that it was “invigorating to have a new competitor” and called it “an impressive model, particularly around what they’re able to deliver for the price”. The European as well as the Japanese tech firms linked to the AI sector also tanked, equally spooked by the Chinese AI chatbot.
While some experts have played down DeepSeek, the fact that it was targeted in a cyber-attack on Monday, forcing it to temporarily limit registrations, suggests that certain people in Washington were extremely terrified of the Chinese AI technology. Essentially, the U.S. can’t control China as the belief that whoever wields the world’s most advanced semiconductors controls the AI race is no longer true.
DeepSeek appears to have accomplished its feat using open-sourced generative AI to build and teach its LLM (Large Language Model). It used a process called “fine-tuning” on a large dataset of text interactions gathered from ChatGPT’s existing open-source model. And it did so far more cheaply, and far more quickly than OpenAI and others who have built their own machine-learning models.
Unhappy with DeepSeek’s accomplishment, OpenAI has accused the Chinese artificial intelligence start-up of using the U.S. company’s proprietary models to train its own open-source competitor, therefore breaching OpenAI’s IP. However, OpenAI is battling allegations of its own copyright infringement from newspapers and content creators, who accuse the company of training its models on their articles and books without permission..
More importantly, it diminishes the geopolitical leverage that Washington and its allies (such as Japan, South Korea, Taiwan and Europe) wield through export controls, sanctions and other restrictions on tech transfer. This means even with second-tier semiconductor, China can achieve first-tier AI status and enjoy benefits in military prowess and economic competitiveness, dealing a blow to the U.S.
Other Articles That May Interest You …
- Trump’s Executive Order To TikTok To Surrender 50% Stake – But Condemned As Daylight Robbery In China
- Scrambling To Save TikTok – Why And How Trump Flip-Flops After Accusing TikTok Of National Security Threat
- U.S. Tries To Force ByteDance To Sell TikTok Again – But There’s No Way In Hell China Will Allow The Sale
- U.S. & Europe Threaten Malaysia To Ban Huawei 5G – Top 10 Reasons Why Anwar Government Should Call The West’s Bluff
- Electric Car As Cheap As $11,000 – How China Beats The U.S. In Electric Vehicles & Leaves Global Brands In The Dust
- Biden Repeating Trump’s Mistakes – Here’s Why The U.S. Cannot Ban TikTok Like Huawei
- U.S. Tech War On China Backfires – How Sanctions Boosting China Chipmaking Industry To Become Self-Sufficient
- Apple’s Secret $275 Billion Investment In China – A Warning Why The U.S. Cannot Afford To Start A War With The Chinese
- How TikTok Erased $250 Billion From Facebook In 1 Day – The Biggest Wipeout In Stock Market History
- Trump To Block Downloads Of TikTok & WeChat On Sunday – But Every Teenager Knows How To Use VPN To Bypass It
- Here’s The Real Reasons Trump Bans TikTok – And It Has Nothing To Do With National Security Threat
- From Trade War To Tech War – After 5G Technology, The US Aims To Cripple China’s Artificial Intelligence
|
|
January 29th, 2025 by financetwitter
|
|
|
|
|
|
|
Definitely a worthy topic, and I’m not merely here to sing most-deserving praises to Ketuanan Cina.
What the Chinese have achieved is massively astounding and earth-shaking. All supremacists (except those dumb loser “supremacists” of Bolehland) have to sit up and agree the Chinese have pulled off a world-beater.
Even the big boys in the game have admitted the Chinese have made one huge monumental achievement.
Not only that, Deepseek shook the markets hard with huge figures wiped off the boards, Boom! – just like that! It even got Orange Man to pay attention and talking.
Truly, when the Chinese Uncles are so flipping capable, their detractors and tech rivals in the West are jolly damn done for! As for Bolehland, it is like space roaming astronaut meets caveman still learning how to hold a samurai sword to wave in the air. If the uncles of the much-worshiped massahs of the West can’t, what about us and our half-baked “supremacists” eh?
If Ketuanan Cina is like this, Bolehland is in DeepSheet, our chickenshit “supremacists” will never catch up with anything Chinese in a thousand years! We’ll just remain all Tok and not a Tik from the heart showing any sign of life.
Tok like some of us were among the very first time to roam the Earth, walking dragging the knuckles, long long ago we sailed on our pirated copies of Chinese boats as our ketuanan “research” showed has not got our “supremacists” nowhere and with the speed technology etc are advancing, we never will, we can’t even make a half-decent car, remember?
China has taken off at hypersonic speed what Yankistan is still failing to get a few convincing flights off its hypersonic programme. What about China’s space programme – or one should say, programmes, China is doing just about everything up there, plenty of which they don’t talk about but we have to be prepared for big surprises! I can bet they’ll surely plant their flag on the moon pretty soon (Chinese, not Bolehland’s “soon”).
What the world can be sure of, China will be announcing more and more amazing achievements in the months or even days to come. I certainly won’t posture and wave threaten with a samurai sword this race of people – lest you want to invite a deep bite in the behind by their robotic dogs!
All over the world, people are talking about DeepSeek and all the time too. There wasn’t any respect in the West for China in AI, and damn well everything else. Lump the Chinese together with the others, the brown, the black, etc, you get that picture of a world that can’t make anything. And can’t even get themselves in some kind of order to exist. Approved by the white uncles, naturally. We are still a world of colonial monkeys who look up to and suck up like servile niggahs the established order – as dictated by the massahs and saviours of the West?
Well, DeepSeek has kicked that long-held “truth” of “supremacy” of the West, and of the white world, in the teeth – or below the belt.
Panic has hit the West and Trump setting up the costly $100 billion investment in AI involving Yankistani giants look rather daft considering a Chinese company has only spent a tiny amount of money compared, and which can upend Yankistani effort, and send such shockwaves across the world.
Sure the Yanks may yet come back with something that may beat the Chinese but chances are the Chinese may yet come up with more surprising achievements to trip those of the Western world. Most punters see that as highly likely, these days the Chinese go only in one direction – and that is up. And up. And remember we are not just talking AI.
For Bolehland, we are worse than getting nowhere. Our moron education can’t ever make up its mind with one year of learning science and maths in half-baked English, the next year in Bahahasa. Those who are able to afford it bugger off elsewhere for their education. Others use their qualifications to go work elsewhere and that is simply not good for us to build any respectable technological industry. At best, our answer to DeepSeek is our model DeepSleep.
All is not lost though, the only way out, the only hope, is to invite our Chinese uncles to come over and run our country. Any less than that will only mean we’re forever buggered. We’re just not, and neither the West, at the level of Ketuanan Cina.
And it looks like we, and even the West, are going to to get worse when it comes to measuring up to anywhere against the Chinese in the near future.