A few months ago, Chinese LLM DeepSeek-R1 made headlines. The world was introduced to an open-source AI model that matched OpenAI o1’s reasoning abilities at a fraction of the cost. A relatively obscure startup topped Apple’s App Store rankings and sent shockwaves through global stock markets.
DeepSeek’s breakthrough proved AI could be built without massive capital investment or Nvidia’s highest-grade chips. More importantly, it showed that an open-source strategy could challenge America’s AI hegemony. China is betting that widespread, open-source use offers more value than the West’s paywalled models, such as ChatGPT, Anthropic’s Claude, and Perplexity.
