Is DeepSeek a democracy-killer? Seven US tech firms lost more than $1 trillion on Monday as a Chinese competitor spooked investors. Some think we have entered a new global race.
Trillion dollar panic over Chinese AI
Is DeepSeek a democracy-killer? Seven US tech firms lost more than $1 trillion on Monday as a Chinese competitor spooked investors. Some think we have entered a new global race.
Over the weekend Americans woke up to a crisis, as Chinese large language modelA type of artificial intelligence (AI) programme that uses deep learning to analyse and generate human language. (LLM) DeepSeek took the world by storm - and crashed the US stock marketA series of exchanges where shares in public companies are issued, bought and sold..
The US tech sector has had a successful few weeks and OpenAIAn American artificial intelligence company. It says its mission is to "benefit all of humanity". was able to secure up to $500bn in funding through the Stargate partnership, backed by Donald Trump.
Then, just days later, DeepSeek's creators claim that it cost less than $6m to develop and is as much as 40 times cheaper to run than OpenAI's ChatGPTAn Artificial Intelligence chatbot released in November 2022. .
This is largely because it uses so much less energy than its US counterparts, a fact which sent the US tech sector into freefall, as investors began asking why US tech giants need all this money and energy.
It is not just Silicon ValleyA global centre of technological innovation in Northern California. It is home to many start-up and global technology companies including Apple, Facebook and Google. that is worried. The US fears China is pulling ahead in the global race to be the top technological power.
As Western markets get saturated with this cheaper AI model, many are worried they will be fed a diet of misinformationIncorrect or misleading information unintentionally presented as fact. It can be contrasted with disinformation or deliberate lies. to the benefit of China.
This is not just a problem with DeepSeek. ChatGPT has previously been accused of having a liberal bias, although OpenAI's relationship to Donald Trump has sparked concerns that it might begin to swing the other way.
Is DeepSeek a democracy-killer?
Yes! This is an AI programme that explicitly favours the narrative of a global superpower.
No! History is full of technologies that promised to reshape society and ended up petering out. Once people figure out the limitations of LLM AI models, these models too will be consigned to the dustbin.
Large Language Model - A type of artificial intelligence (AI) programme that uses deep learning to analyse and generate human language.
Stock Market - A series of exchanges where shares in public companies are issued, bought and sold.
OpenAI - An American artificial intelligence company. It says its mission is to "benefit all of humanity".
ChatGPT - An Artificial Intelligence chatbot released in November 2022.
Silicon Valley - A global centre of technological innovation in Northern California. It is home to many start-up and global technology companies including Apple, Facebook and Google.
Misinformation - Incorrect or misleading information unintentionally presented as fact. It can be contrasted with disinformation or deliberate lies.
Trillion dollar panic over Chinese AI

Glossary
Large Language Model - A type of artificial intelligence (AI) programme that uses deep learning to analyse and generate human language.
Stock Market - A series of exchanges where shares in public companies are issued, bought and sold.
OpenAI - An American artificial intelligence company. It says its mission is to "benefit all of humanity".
ChatGPT - An Artificial Intelligence chatbot released in November 2022.
Silicon Valley - A global centre of technological innovation in Northern California. It is home to many start-up and global technology companies including Apple, Facebook and Google.
Misinformation - Incorrect or misleading information unintentionally presented as fact. It can be contrasted with disinformation or deliberate lies.