The start-up had become a key player in the “Chinese Large-Model Technology Avengers Team” that would counter US AI dominance, said another. China’s delight, however, spelled pain for several giant US technology companies as investors questioned whether DeepSeek’s breakthrough undermined the case for their colossal spending on AI infrastructure.

The U.S. tried to slow China’s advances, but the startup showed how hard that is.

Chinese tech startup DeepSeek ’s new artificial intelligence chatbot has sparked discussions about the competition between China and the U.S. in AI development, with many users flocking to test the rival of OpenAI ‘s ChatGPT.

OpenAI claims to have found evidence that Chinese AI startup DeepSeek secretly used data produced by OpenAI’s technology to improve their own AI models, according to the Financial Times. If true, DeepSeek would be in violation of OpenAI’s terms of service.

It’s impossible to look at the Chinese artificial intelligence startup DeepSeek’s new AI model without comparing it against OpenAI, the dominant American rival.DeepSeek has touted its latest AI model,