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Chinese start-ups such as DeepSeek are challenging global AI giants

Their models are cheaper thanks to US export restrictions that have inadvertently spurred innovation
DeepSeek, a Chinese AI start-up, has released a new model that rivals those produced by big American companies. Some see its success as a sign of China’s increasing self-reliance

The writer is professor of law at the Gould School of Law, University of Southern California, and author of ‘High Wire: How China Regulates Big Tech and Governs Its Economy’

Last month, a Chinese start-up called DeepSeek astonished the international tech community with its latest open-source artificial intelligence model. DeepSeek-V3 delivers a performance comparable to that of better-funded US rivals such as OpenAI. This week it impressed once again with R1, its foray into AI reasoning.

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