Beijing says DeepSeek is not going to compete with AI giants like Openai and Google

• China officially praised its rising star DeepSeek for its success.

• However, instead of using DeepSeek as a challenger, Beijing said it would “supplement” American companies.

• Although DeepSeek has upended beliefs about the cost of AI, American companies are focused on the race to reach AGI.

China praised DeepSeek's hyped AI model on Monday, but said the Hangzhou-based company did not compete with the leading U.S. AI companies.

“As AI continues to reshape human industry and daily life, DeepSeek complements, rather than competing with existing AI leaders,” said a statement seen in Business Insider, Beijing's embassy in Washington. For example, Openai, Anthropic and Google Deepmind. “

Since low-cost AI models reportedly shocked the technology community, DeepSeek has continued to increase its popularity in Beijing. Liang Wenfeng, the founder of the startup, quickly became a star in his home, gaining front seats at a workshop last week hosted by Chinese leader XI Jinping.

In China's tech world, the seminar has been a supportive remark from Xi Jinping, and the presence of Alibaba founder Jack Ma, who once avoided, was a positive signal after years of industry crackdowns.

At another moment of formal recognition of DeepSeek, the Chinese Embassy’s statement on Monday praised the company’s success, saying it “significantly reduces the cost of artificial intelligence development.”

DeepSeek said it spent less than $6 million in “official training” on the latest model, but the scope of those fees is not clearly defined. Semiconductor analysis company Semiaalsy estimates that the company may have a GPU worth $500 million.

The most cutting-edge American company in AI also called the Western Panic exaggerated DeepSeek.

For example, Google DeepMind CEO said the Chinese model is impressive, but there is no “real new scientific advancement” for the real goal of AI leaders – reaching artificial general intelligence.

Still, DeepSeek is seriously undercutting the pricing model of American AI companies like OpenAI, and Bernstein technical analysts estimate that DeepSeek is 20 to 40 times cheaper.

But Beijing’s official lines adopt a reconciliation tone, using Chinese companies involved in AI as an opportunity to cooperate rather than surpassing American companies.

“AI companies in various regions provide better and more inclusive solutions to users everywhere.” The embassy said in its statement. The embassy has long emphasized the desire to build cooperation and avoid conflicts has been at the heart of the Chinese public image,” the embassy said. .

On the other hand, the U.S. warns that its race to develop more complex AI with China will be a difference in Beijing’s struggle for superiority.

The Chinese Embassy did not respond to other requests for comment from normal working hours other than BI. DeepSeek and Highflyer, the parent company of the startup, did not respond to similar requests for comment.

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