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The Star
7 days ago
- Business
- The Star
China prepares to unseat US in fight for AI market
While humanoid robots faced off in a boxing ring at China's flagship artificial intelligence conference in Shanghai, a fight in the US-China tech war was fought in suits nearby over who gets to set the rules in the AI age. China's answer is a new global organisation to convene countries to foster safe and inclusive use of the powerful new technology. At the annual World AI Conference over the weekend, Chinese Premier Li Qiang warned of AI "monopoly' and instead called on foreign officials in the room – mostly from developing countries – to cooperate on governance. The new group, known as the World AI Cooperation Organization, embodies China's plan to jostle with the US for sway by positioning itself as a champion of AI for all. More favourable rules may give a global boost to Chinese companies competing with US firms to sell hardware and services in a market estimated to hit US$4.8 trillion (RM20.53 trillion) by 2033. For many of the countries represented at the conference, Chinese firms already offer competitive solutions, even if the US dominates the supply of cutting-edge AI chips. "The Chinese are coming to the table with a very different AI product mix that is going to be extremely appealing to lower-income countries that lack the computing and power infrastructure needed for large-scale implementation of OpenAI-like AI systems,' said Eric Olander of the China-Global South Project. Using technology as both carrot and calling card, Beijing's approach appears to take a page out of its earlier Digital Silk Road initiative, which put Chinese companies at the centre of telecommunications networks spanning continents. China for years has strived to define the global parameters for emerging technologies such as 5G, seeking to influence development and set the stage for its companies to win market share abroad. Huawei Technologies Co's prominent role in standard-setting groups became the subject of scrutiny of the US government when it cracked down on the use of its equipment. Global AI governance has emerged as a new battleground for the world's leading powers, both seeing the technology as critical not just for their economy but national security. President Donald Trump declared last week that his country will "do whatever it takes' to lead in AI, with his plan for actions including countering Chinese influence in international governance bodies. While there are no binding global rules for AI development, China's action plan calls for building more digital infrastructure that uses clean power and unifying computing power standards. The country also said it supports the role of businesses in creating technical standards in security, industry and ethics. Details about the Chinese body, to be headquartered in Shanghai, are scarce. In brief public remarks before media were ushered out of the room, a Chinese Foreign Ministry senior official, Ma Zhaoxu, said the organization would work to establish standards and governance frameworks. China would discuss details with those countries that are willing to join, he added. As US and Chinese companies race to develop systems that could match or even surpassed human intelligence, safety concerns have also prompted calls for guardrails. AI pioneer Geoffrey Hinton, who spoke at the Chinese event, expressed support for international bodies to collaborate on safety issues. Part of Beijing's AI strategy appears to come from its diplomatic playbook, which urges support for Global South countries to step up in international affairs. In his address to kick off the Saturday event, Li emphasised helping those nations develop AI. These countries made up most of more than 30 nations that were invited to the high-level governance talks, including Ethiopia, Cuba, Bangladesh, Russia and Pakistan. A handful of European countries including the Netherlands, France and Germany, the EU and several international organizations were also represented. No nameplate for the US was seen by Bloomberg News. The US Embassy in Beijing declined to comment on any official presence. Achmad Adhitya, special adviser to Indonesia's vice president who attended the meeting, told Bloomberg News that China's initiative is "very appreciated by the Indonesian government.' His country is preparing AI curricula to be rolled out across 400,000 schools and is training 60,000 teachers about the tech, he said. Beijing's emphasis on openness – a word used 15 times in its governance action plan – appears to ride on the success of Deepseek earlier this year. The AI upstart stunned the world not just by releasing AI models that are almost as capable as those of OpenAI but also made them freely available for anyone to download and customize for free. A succession of Chinese companies has done the same, with companies from incumbent giants like Alibaba and newcomers like Moonshot releasing cutting-edge large language models that are similarly open-weight. That accessibility may be especially important to developing countries who may not have the resources to gather vast datasets and train their own AI models from scratch, a process that would involve expensive chips made by companies such as Nvidia Corp. China also emphasises Internet sovereignty, something that may appeal to more autocratic regimes around the world. "We should respect other countries' national sovereignty and strictly abide by their laws when providing them with AI products and services,' according to the country's Global AI Governance Initiative issued in 2023. In contrast, Trump's AI plan vows that the US government will only work with engineers who "ensure that their systems are objective and free from top-down ideological bias.' The US-China rivalry presents a familiar dilemma for countries that may feel pressured to choose a side, but Solly Malatsi, minister of communications and digital technologies of South Africa, rejects the binary choice. "It's not a case of one model over the other,' Malatsi said from the conference. "It's about an integration of the best of both worlds.' – Bloomberg

Straits Times
01-08-2025
- Business
- Straits Times
China prepares to unseat US in fight for AI market
Sign up now: Get ST's newsletters delivered to your inbox Chinese Premier Li Qiang warned of AI 'monopoly' and instead called on foreign officials in the room to cooperate on governance. BEIJING – While humanoid robots faced off in a boxing ring at China's flagship artificial intelligence conference in Shanghai, a fight in the US-China tech war was fought in suits nearby over who gets to set the rules in the AI age. China's answer is a new global organisation to convene countries to foster safe and inclusive use of the powerful new technology. At the annual World AI Conference over the weekend, Chinese Premier Li Qiang warned of AI 'monopoly' and instead called on foreign officials in the room – mostly from developing countries – to cooperate on governance. The new group, known as the World AI Cooperation Organization, embodies China's plan to jostle with the US for sway by positioning itself as a champion of AI for all. More favourable rules may give a global boost to Chinese companies competing with US firms to sell hardware and services in a market estimated to hit US$4.8 trillion (S$6.2 trillion) by 2033. For many of the countries represented at the conference, Chinese firms already offer competitive solutions, even if the US dominates the supply of cutting-edge AI chips. 'The Chinese are coming to the table with a very different AI product mix that is going to be extremely appealing to lower-income countries that lack the computing and power infrastructure needed for large-scale implementation of OpenAI-like AI systems,' said Mr Eric Olander of the China-Global South Project. Using technology as both carrot and calling card, Beijing's approach appears to take a page out of its earlier Digital Silk Road initiative, which put Chinese companies at the center of telecommunications networks spanning continents. China for years has strived to define the global parameters for emerging technologies such as 5G, seeking to influence development and set the stage for its companies to win market share abroad. Huawei Technologies' prominent role in standard-setting groups became the subject of scrutiny of the US government when it cracked down on the use of its equipment. Global AI governance has emerged as a new battleground for the world's leading powers, both seeing the technology as critical not just for their economy but national security. President Donald Trump declared last week that his country will 'do whatever it takes' to lead in AI, with his plan for actions including countering Chinese influence in international governance bodies. While there are no binding global rules for AI development, China's action plan calls for building more digital infrastructure that uses clean power and unifying computing power standards. The country also said it supports the role of businesses in creating technical standards in security, industry and ethics. Details about the Chinese body, to be headquartered in Shanghai, are scarce. In brief public remarks before media were ushered out of the room, a Chinese Foreign Ministry senior official, Mr Ma Zhaoxu, said the organisation would work to establish standards and governance frameworks. China would discuss details with those countries that are willing to join, he added. As US and Chinese companies race to develop systems that could match or even surpassed human intelligence, safety concerns have also prompted calls for guardrails. AI pioneer Geoffrey Hinton, who spoke at the Chinese event, expressed support for international bodies to collaborate on safety issues. Part of Beijing's AI strategy appears to come from its diplomatic playbook, which urges support for Global South countries to step up in international affairs. In his address to kick off the Saturday event, Mr Li emphasised helping those nations develop AI. These countries made up most of more than 30 nations that were invited to the high-level governance talks, including Ethiopia, Cuba, Bangladesh, Russia and Pakistan. A handful of European countries including the Netherlands, France and Germany, the EU and several international organisations were also represented. No nameplate for the US was seen by Bloomberg News. The US Embassy in Beijing declined to comment on any official presence. Dr Achmad Adh itya, special adviser to Indonesia's vice-president who attended the meeting, told Bloomberg News that China's initiative is 'very appreciated by the Indonesian government.' His country is preparing AI curricula to be rolled out across 400,000 schools and is training 60,000 teachers about the tech, he said. Beijing's emphasis on openness – a word used 15 times in its governance action plan – appears to ride on the success of Deepseek earlier this year. The AI upstart stunned the world not just by releasing AI models that are almost as capable as those of OpenAI but also made them freely available for anyone to download and customise for free. A succession of Chinese companies has done the same, with companies from incumbent giants like Alibaba and newcomers like Moonshot releasing cutting-edge large language models that are similarly open-weight. That accessibility may be especially important to developing countries who may not have the resources to gather vast datasets and train their own AI models from scratch, a process that would involve expensive chips made by companies such as Nvidia Corp. China also emphasises internet sovereignty, something that may appeal to more autocratic regimes around the world. 'We should respect other countries' national sovereignty and strictly abide by their laws when providing them with AI products and services,' according to the country's Global AI Governance Initiative issued in 2023. In contrast, Mr Trump's AI plan vows that the US government will only work with engineers who 'ensure that their systems are objective and free from top-down ideological bias'. The US-China rivalry presents a familiar dilemma for countries that may feel pressured to choose a side, but Solly Malatsi, minister of communications and digital technologies of South Africa, rejects the binary choice. 'It's not a case of one model over the other,' Mr Malatsi said from the conference. 'It's about an integration of the best of both worlds.' BLOOMBERG
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Business Standard
30-07-2025
- Business
- Business Standard
China launches global AI body to rival US in $4.8 trillion tech race
While humanoid robots faced off in a boxing ring at China's flagship artificial intelligence conference in Shanghai, a fight in the US-China tech war was fought in suits nearby over who gets to set the rules in the AI age. China's answer is a new global organization to convene countries to foster safe and inclusive use of the powerful new technology. At the annual World AI Conference over the weekend, Chinese Premier Li Qiang warned of AI 'monopoly' and instead called on foreign officials in the room — mostly from developing countries — to cooperate on governance. The new group, known as the World AI Cooperation Organization, embodies China's plan to jostle with the US for sway by positioning itself as a champion of AI for all. More favorable rules may give a global boost to Chinese companies competing with US firms to sell hardware and services in a market estimated to hit $4.8 trillion by 2033. For many of the countries represented at the conference, Chinese firms already offer competitive solutions, even if the US dominates the supply of cutting-edge AI chips. 'The Chinese are coming to the table with a very different AI product mix that is going to be extremely appealing to lower-income countries that lack the computing and power infrastructure needed for large-scale implementation of OpenAI-like AI systems,' said Eric Olander of the China-Global South Project. Over 800 AI companies from more than 70 countries and regions attended the conference, according to the Chinese Ministry of Foreign Affairs. Using technology as both carrot and calling card, Beijing's approach appears to take a page out of its earlier Digital Silk Road initiative, which put Chinese companies at the center of telecommunications networks spanning continents. China for years has strived to define the global parameters for emerging technologies such as 5G, seeking to influence development and set the stage for its companies to win market share abroad. Huawei Technologies Co.'s prominent role in standard-setting groups became the subject of scrutiny of the US government when it cracked down on the use of its equipment. Global AI governance has emerged as a new battleground for the world's leading powers, both seeing the technology as critical not just for their economy but national security. President Donald Trump declared last week that his country will 'do whatever it takes' to lead in AI, with his plan for actions including countering Chinese influence in international governance bodies. While there are no binding global rules for AI development, China's action plan calls for building more digital infrastructure that uses clean power and unifying computing power standards. The country also said it supports the role of businesses in creating technical standards in security, industry and ethics. Details about the Chinese body, to be headquartered in Shanghai, are scarce. In brief public remarks before media were ushered out of the room, a Chinese Foreign Ministry senior official, Ma Zhaoxu, said the organization would work to establish standards and governance frameworks. China would discuss details with those countries that are willing to join, he added. As US and Chinese companies race to develop systems that could match or even surpassed human intelligence, safety concerns have also prompted calls for guardrails. AI pioneer Geoffrey Hinton, who spoke at the Chinese event, expressed support for international bodies to collaborate on safety issues. Part of Beijing's AI strategy appears to come from its diplomatic playbook, which urges support for Global South countries to step up in international affairs. In his address to kick off the Saturday event, Li emphasized helping those nations develop AI. These countries made up most of more than 30 nations that were invited to the high-level governance talks, including Ethiopia, Cuba, Bangladesh, Russia and Pakistan. A handful of European countries including the Netherlands, France and Germany, the EU and several international organizations were also represented. No nameplate for the US was seen by Bloomberg News. The US Embassy in Beijing declined to comment on any official presence. Achmad Adhitya, special adviser to Indonesia's vice president who attended the meeting, told Bloomberg News that China's initiative is 'very appreciated by the Indonesian government.' His country is preparing AI curricula to be rolled out across 400,000 schools and is training 60,000 teachers about the tech, he said. Beijing's emphasis on openness — a word used 15 times in its governance action plan — appears to ride on the success of Deepseek earlier this year. The AI upstart stunned the world not just by releasing AI models that are almost as capable as those of OpenAI but also made them freely available for anyone to download and customize for free. A succession of Chinese companies has done the same, with companies from incumbent giants like Alibaba and newcomers like Moonshot releasing cutting-edge large language models that are similarly open-weight. That accessibility may be especially important to developing countries who may not have the resources to gather vast datasets and train their own AI models from scratch, a process that would involve expensive chips made by companies such as Nvidia Corp. China also emphasizes internet sovereignty, something that may appeal to more autocratic regimes around the world. 'We should respect other countries' national sovereignty and strictly abide by their laws when providing them with AI products and services,' according to the country's Global AI Governance Initiative issued in 2023. In contrast, Trump's AI plan vows that the US government will only work with engineers who 'ensure that their systems are objective and free from top-down ideological bias.' The US-China rivalry presents a familiar dilemma for countries that may feel pressured to choose a side, but Solly Malatsi, minister of communications and digital technologies of South Africa, rejects the binary choice. 'It's not a case of one model over the other,' Malatsi said from the conference. 'It's about an integration of the best of both worlds.'
Yahoo
27-01-2025
- Business
- Yahoo
What that powerful new Chinese AI app means for Washington
A little-known Chinese artificial intelligence startup shook the tech world this weekend by releasing an OpenAI-like assistant, which shot to the No.1 ranking on Apple's app store and caused American tech giants' stocks to tumble. From Washington's perspective, the news raised an immediate policy alarm: It happened despite consistent, bipartisan efforts to stifle AI progress in China. Both President Donald Trump and former President Joe Biden have made global competition — and, specifically, boxing out China — the centerpiece of their tech and AI policies. Somehow, a small and nimble Chinese company just jumped ahead anyway. In tech terms, what freaked everyone out about DeepSeek's R1 model is that it replicated — and in some cases, surpassed — the performance of OpenAI's cutting-edge o1 product across a host of performance benchmarks, at a tiny fraction of the cost. The business takeaway was straightforward. DeepSeek's success shows that American companies might not need to spend nearly as much as expected to develop AI models. That both intrigues and worries investors and tech leaders. Some, like Microsoft CEO Satya Nadella, celebrated what they saw as the commodification of AI — a future where a wide range of companies can deploy the technology way more cheaply. Investors, clearly, had doubts: Quite a few tech stocks took a plunge, especially the highly valued chipmaker Nvidia, the biggest beneficiary of the current AI infrastructure rush. The policy implications, though, are more complex. Washington's rampant anxiety about beating China has led to policies that the industry has very mixed feelings about. On one hand, most tech firms hate the export controls that stop them from selling as much to the world's second-largest economy, and force them to develop new products if they want to do business with China. If DeepSeek shows those rules are pointless, many would be delighted to see them go away. On the other hand, anti-China, protectionist sentiment has encouraged Washington to embrace a whole host of industry wishlist items, from a lighter-touch approach to AI rules to streamlined permitting for related construction projects. Does DeepSeek mean those, too, are failing? Or does it trigger a doubling-down? DeepSeek's success truly seems to challenge the belief that the future of American AI demands ever more chips and power. That complicates Trump's interest in rapidly building out that kind of infrastructure in the U.S. Why pour $500 billion into the Trump-endorsed 'Stargate' mega project — and why would the market reward companies like Meta that spend $65 billion in just one year on AI — if DeepSeek claims it only took $5.6 million and second-tier Nvidia chips to train one of its latest models? (U.S. industry insiders dispute the startup's figures and claim they don't tell the full story, but even at 100 times that cost, it would be a bargain.) 'The leading American companies are all part of this phenomenon whereby AI models continuously get smaller, faster, cheaper,' said Gregory Allen, director of the Wadhwani AI Center at the Center for Strategic and International Studies think tank. He points out that DeepSeek techniques, powered by more impressive equipment, could also turbocharge American AI development: 'If Deepseek is kind of illustrative of the floor of capabilities being raised — what do you get for not that much money — in parallel, there is this phenomenon of the ceiling being raised.' This first appeared in Digital Future Daily, POLITICO's afternoon newsletter about how tech and power are shaping our world. Subscribe here. Tech companies, of course, love the recent bloom of federal support, and it's unlikely they'll drop their push for more federal investment to match anytime soon. Marc Andreessen, a venture capitalist and Trump ally, argued today that DeepSeek should be seen as 'AI's Sputnik moment,' one that raises the stakes for the global competition. That would strengthen the case that some American AI companies have been pressing for the new administration to invest government resources into AI infrastructure (OpenAI), tighten restrictions on China (Anthropic) and ease up on regulations to ensure their developers build 'artificial general intelligence' before their geopolitical rivals. David Sacks, fellow VC and Trump's AI czar, invoked the model to pump up Trump's approach and rebuke the Biden administration for adding too much friction to AI development. 'DeepSeek R1 shows that the AI race will be very competitive and that President Trump was right to rescind the Biden EO,' Sacks posted on X. 'I'm confident the U.S. can lead, but we can't afford to be complacent.' It's too early to tell how Congress will respond, but the past offers some clues. In many ways, DeepSeek mirrors another Beijing tech breakthrough that blindsided both policymakers and Silicon Valley: when Huawei in 2023 seemingly sidestepped U.S. sanctions to drop a smartphone powered by a 7-nanometer chip, the most advanced China had ever produced at the time. Just like that launch, which happened as then-Commerce Secretary Gina Raimondo was visiting China, Beijing may be sending a well-timed message to the Trump administration. In an interview last year, Deepseek's CEO said the number one challenge facing his company is export controls. Trump has ordered agencies to study existing restrictions for possible loopholes and report back by April 1. 'The story is the same in both cases, which is that the technology is legitimate and impressive, but the timing is politically motivated,' said Allen. '[This] is an attempt to try and change the political narrative in a new presidential administration — to try and say export controls have already failed, we should give up on them. That is the plan here.' That strategy backfired during the Huawei chip saga. If anything, China hawks in Congress were further galvanized by that and other Chinese tech breakthroughs slipping past U.S. restrictions, often reacting by calling for a tougher crackdown. Allen sees reason to not let up on China this time either. Deepseek's innovation mainly comes from a technical mechanism, he said: 'They have this architecture that allows them to extract more IQ points per chip.' But when that multiplier is applied across China's limited chip count versus a massive supply, the result is a far greater intelligence advantage for the U.S. By that logic, so long as the U.S. keeps denying China access to coveted American tech and fixing its workarounds, it will have the upper hand. 'Their improvements — architectural and algorithmic — are available to Western countries. And our advantages of superior chip architecture remain denied to them,' said Allen. Deepseek's development could also mean U.S. export controls need more time to bite, not necessarily that they have failed. 'Right now, particularly with the stock market behaving the way it is, we're really at peak freak out,' Bill Drexel, a fellow at the Center for a New American Security, told POLITICO Tech host Steven Overly. '[China] has gone a lot faster than we expected. They've closed more gaps than we anticipated, but it's still going to be difficult for them to compete in the years ahead.' Steven Overly contributed to this report.


Politico
27-01-2025
- Business
- Politico
What that powerful new Chinese AI app means for Washington
A little-known Chinese artificial intelligence startup shook the tech world this weekend by releasing an OpenAI-like assistant, which shot to the No.1 ranking on Apple's app store and caused American tech giants' stocks to tumble. From Washington's perspective, the news raised an immediate policy alarm: It happened despite consistent, bipartisan efforts to stifle AI progress in China. Both President Donald Trump and former President Joe Biden have made global competition — and, specifically, boxing out China — the centerpiece of their tech and AI policies. Somehow, a small and nimble Chinese company just jumped ahead anyway. In tech terms, what freaked everyone out about DeepSeek's R1 model is that it replicated — and in some cases, surpassed — the performance of OpenAI's cutting-edge o1 product across a host of performance benchmarks, at a tiny fraction of the cost. The business takeaway was straightforward. DeepSeek's success shows that American companies might not need to spend nearly as much as expected to develop AI models. That both intrigues and worries investors and tech leaders. Some, like Microsoft CEO Satya Nadella, celebrated what they saw as the commodification of AI — a future where a wide range of companies can deploy the technology way more cheaply. Investors, clearly, had doubts: Quite a few tech stocks took a plunge, especially the highly valued chipmaker Nvidia, the biggest beneficiary of the current AI infrastructure rush. The policy implications, though, are more complex. Washington's rampant anxiety about beating China has led to policies that the industry has very mixed feelings about. On one hand, most tech firms hate the export controls that stop them from selling as much to the world's second-largest economy, and force them to develop new products if they want to do business with China. If DeepSeek shows those rules are pointless, many would be delighted to see them go away. On the other hand, anti-China, protectionist sentiment has encouraged Washington to embrace a whole host of industry wishlist items, from a lighter-touch approach to AI rules to streamlined permitting for related construction projects. Does DeepSeek mean those, too, are failing? Or does it trigger a doubling-down? DeepSeek's success truly seems to challenge the belief that the future of American AI demands ever more chips and power. That complicates Trump's interest in rapidly building out that kind of infrastructure in the U.S. Why pour $500 billion into the Trump-endorsed 'Stargate' mega project — and why would the market reward companies like Meta that spend $65 billion in just one year on AI — if DeepSeek claims it only took $5.6 million and second-tier Nvidia chips to train one of its latest models? (U.S. industry insiders dispute the startup's figures and claim they don't tell the full story, but even at 100 times that cost, it would be a bargain.) 'The leading American companies are all part of this phenomenon whereby AI models continuously get smaller, faster, cheaper,' said Gregory Allen, director of the Wadhwani AI Center at the Center for Strategic and International Studies think tank. He points out that DeepSeek techniques, powered by more impressive equipment, could also turbocharge American AI development: 'If Deepseek is kind of illustrative of the floor of capabilities being raised — what do you get for not that much money — in parallel, there is this phenomenon of the ceiling being raised.' This first appeared in Digital Future Daily, POLITICO's afternoon newsletter about how tech and power are shaping our world. Subscribe here. Tech companies, of course, love the recent bloom of federal support, and it's unlikely they'll drop their push for more federal investment to match anytime soon. Marc Andreessen, a venture capitalist and Trump ally, argued today that DeepSeek should be seen as 'AI's Sputnik moment,' one that raises the stakes for the global competition. That would strengthen the case that some American AI companies have been pressing for the new administration to invest government resources into AI infrastructure (OpenAI), tighten restrictions on China (Anthropic) and ease up on regulations to ensure their developers build 'artificial general intelligence' before their geopolitical rivals. David Sacks, fellow VC and Trump's AI czar, invoked the model to pump up Trump's approach and rebuke the Biden administration for adding too much friction to AI development. 'DeepSeek R1 shows that the AI race will be very competitive and that President Trump was right to rescind the Biden EO,' Sacks posted on X. 'I'm confident the U.S. can lead, but we can't afford to be complacent.' It's too early to tell how Congress will respond, but the past offers some clues. In many ways, DeepSeek mirrors another Beijing tech breakthrough that blindsided both policymakers and Silicon Valley: when Huawei in 2023 seemingly sidestepped U.S. sanctions to drop a smartphone powered by a 7-nanometer chip, the most advanced China had ever produced at the time. Just like that launch, which happened as then-Commerce Secretary Gina Raimondo was visiting China, Beijing may be sending a well-timed message to the Trump administration. In an interview last year, Deepseek's CEO said the number one challenge facing his company is export controls. Trump has ordered agencies to study existing restrictions for possible loopholes and report back by April 1. 'The story is the same in both cases, which is that the technology is legitimate and impressive, but the timing is politically motivated,' said Allen. '[This] is an attempt to try and change the political narrative in a new presidential administration — to try and say export controls have already failed, we should give up on them. That is the plan here.' That strategy backfired during the Huawei chip saga. If anything, China hawks in Congress were further galvanized by that and other Chinese tech breakthroughs slipping past U.S. restrictions, often reacting by calling for a tougher crackdown. Allen sees reason to not let up on China this time either. Deepseek's innovation mainly comes from a technical mechanism, he said: 'They have this architecture that allows them to extract more IQ points per chip.' But when that multiplier is applied across China's limited chip count versus a massive supply, the result is a far greater intelligence advantage for the U.S. By that logic, so long as the U.S. keeps denying China access to coveted American tech and fixing its workarounds, it will have the upper hand. 'Their improvements — architectural and algorithmic — are available to Western countries. And our advantages of superior chip architecture remain denied to them,' said Allen. Deepseek's development could also mean U.S. export controls need more time to bite, not necessarily that they have failed. 'Right now, particularly with the stock market behaving the way it is, we're really at peak freak out,' Bill Drexel, a fellow at the Center for a New American Security, told POLITICO Tech host Steven Overly. '[China] has gone a lot faster than we expected. They've closed more gaps than we anticipated, but it's still going to be difficult for them to compete in the years ahead.' Steven Overly contributed to this report.