China is publicly praising DeepSeek, its emerging AI model, but is framing its development as a complement to, rather than a competitor of, leading American firms.
In a statement released by the Chinese embassy in Washington on Monday, Beijing asserted that DeepSeek’s role in the evolving AI landscape is one of collaboration. “As AI continues to reshape industries and everyday life of humanity, DeepSeek complements, rather than competes against, existing AI leaders like OpenAI, Anthropic, and Google DeepMind,” the statement, obtained by Business Insider, said.
DeepSeek, based in Hangzhou, has quickly gained prominence within China. Its founder, Liang Wenfeng, was given a prominent position at a recent symposium hosted by Chinese leader Xi Jinping. The symposium served as a rallying point for China’s tech sector, with Xi’s supportive comments and the attendance of Alibaba founder Jack Ma seen as positive signals after years of industry regulation.
The Chinese embassy’s statement also highlighted DeepSeek’s success in “significantly lower[ing] AI development costs.” The company claims to have spent less than $6 million on its most recent model’s training, though the exact scope of those expenses remains unclear. However, SemiAnalysis, a semiconductor analytics firm, estimated that DeepSeek may possess GPU resources potentially valued at $500 million.
Despite the model’s impressive advancements and price points, American AI firms remain focused on a different goal: artificial general intelligence (AGI). According to Google DeepMind’s CEO, while DeepSeek’s achievements are notable, the model hasn’t demonstrated groundbreaking scientific progress towards AGI. DeepSeek’s pricing model, on the other hand, is significantly undercutting American firms like OpenAI, with Bernstein tech analysts estimating that DeepSeek’s prices are 20 to 40 times cheaper.
Beijing’s official narrative emphasizes the prospect of international cooperation. The Chinese embassy stated, “AI companies across different regions contribute unique strengths, leading to better, more inclusive solutions for users everywhere.” This public positioning aligns with China’s long-standing interest in promoting collaboration and minimizing conflict.
The US, however, has increasingly emphasized the importance of its AI development race with China, viewing it as a key factor in Beijing’s broader ambitions. The Chinese embassy, DeepSeek, and its parent company, HighFlyer, did not respond to requests for further comment.
