Chinese startup DeepSeek claims to offer competitive AI models at lower costs, raising doubts about U.S. tech giants' investments in AI. Microsoft and Meta defend their significant spending, highlighting its importance for long-term strategic advantage amidst increasing demand for AI solutions.

The economic hardware/software debate about China just got more complicated. Before DeepSeek flipped the script on the artificial intelligence game, many economists worried China had way too much of the former and not enough of the latter.

Chinese AI firm DeepSeek says it is facing "large-scale malicious attacks", which are affecting its services. Chinese state media is citing cyber security experts who say the attacks are originating from US-based IP addresses,

The success of DeepSeek’s new AI model points to how China might eventually achieve an even bigger technological breakthrough in the face of US export curbs: Producing its own cutting-edge chips.