March 6, 2025
By Daniel Hummell
Staff Writer
The United States has been the leader in the artificial intelligence race for decades, but China is now threatening this role.
In recent months, China’s DeepSeek emerged as a worthy opponent to major American AI companies like OpenAI and semiconductor companies like Nvidia, which makes the chips used by OpenAI. As DeepSeek gained traction, Nvidia’s investors grew alarmed. Nvidia, for example, lost over $590 billion in market value. Although Nvidia has regained most of its value, this should still serve as a wake-up call.
Losing the AI war is a big problem for the United States, as China and the United States have had tensions for years on account of China’s economic practices and its communist government.
CBS News has reported that DeepSeek is allegedly sharing sensitive data with the Communist Party. This points to the potential of a national security issue.
Furthermore, DeepSeek powers its model with fewer chips, which raises concerns that the United States is falling behind. Fewer chips means fewer resources are required, and less money is needed to power DeepSeek’s chatbot.
DeepSeek is not the only company Nvidia is worried about. Chinese Technology conglomerates Baidu and Tencent have also made generative AI platforms that outperform OpenAI, which launched ChatGPT to the masses in late 2022.
Similarly, the United States banned the cell phone manufacturer Huawei in 2022 amid criticisms that the Chinese company had been sharing users’ information with the CPC. This ban also stopped companies like Google and chip manufacturers like Qualcomm from partnering with Huawei.
In recent months, China’s DeepSeek emerged as a worthy opponent to major American AI companies like OpenAI and semiconductor companies like Nvidia, which makes the chips used by OpenAI.
Last year, former President Joe Biden’s administration sanctioned CPU chips exported to China to stop China from advancing. These sanctions limit the exports of high-power chips from the United States to China. President Donald Trump has said he will continue these sanctions.
The Trump administration has been strengthening Biden’s plan to safeguard the United States’ semiconductors to limit China’s influence on the market. Despite this, DeepSeek managed to break through, and it already outperforms competitors with full access to American semiconductors.
Now is the time for American AI companies to implement DeepSeek’s cost-effective strategies. As Trump said during a Jan. 27 meeting with House Republicans in Miami, America must be “laser-focused on competing to win.”
If the United States wants to maintain its lead, it must learn from China and try to outperform it.
