DeepSeek’s AI Model Tests Limits of US Restrictions on Nvidia Chips
- Nvidia calls R1 an ‘excellent’ advance that meets US limits
- Trump says release should be a ‘wake-up call’ for US companies
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Powerful artificial intelligence software from Chinese startup DeepSeek indicates that its engineers built a competitive model despite US attempts to curtail China’s tech development, raising questions about the effectiveness of Washington’s trade curbs.
The company’s recently released R1 model, which it claims to have developed at a fraction of the cost borne by rival AI companies, sent tech stocks into a tailspin Monday as investors questioned the need to spend billions on advanced hardware. It’s also sparked a debate in Washington about the best strategy to prevent China from developing cutting-edge AI, which US policymakers see as a national security risk.