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It shocked the US market but has China’s DeepSeek changed AI?

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Lily Jamali

Reporting fromSan Francisco
Shutterstock The DeepSeek app from a Chinese AI technology company is displayed on a mobile phone Shutterstock

US President Donald Trump had been in office scarcely a week when a new Chinese artificial intelligence (AI) app called DeepSeek jolted Silicon Valley.

Overnight, DeepSeek-R1 shot to the top of the Apple charts as the most downloaded free app in the US.

The firm said at the time its new chatbot rivalled ChatGPT. Not only that. They asserted it had cost a mere fraction to develop.

Those claims – and the app’s sudden surge in popularity – wiped $600bn (£446bn) or 17% off the market value of chip giant Nvidia, marking the largest one-day loss for a single stock in the history of the US stock market.

Several other tech stocks with exposure to AI were caught in the downdraft, too.

DeepSeek also cast doubt on American AI dominance. Up until then, China had been seen as having fallen behind the US. Now, it seemed as though China had catapulted to the forefront.

Venture capitalist Marc Andreessen referred to the arrival of DeepSeek-R1 as “AI’s Sputnik moment,” a reference to the Soviet satellite that had kicked off the space race between the US and the USSR more than a half century earlier.

Bloomberg via Getty Images An electronic board displays stock figures outside a securities firm in Tokyo, Japan, on Tuesday, Jan. 28, 2025. Bloomberg via Getty Images

Shares of Japanese semiconductor-related companies extended a late January drop after the release of Chinese AI model DeepSeek prompted a selloff in US tech stocks

Still relevant

It has now been six months since DeepSeek stunned the world.

Today, China’s breakthrough app has largely dropped out of the headlines. It’s no longer the hot topic at happy hour here in San Francisco. But DeepSeek hasn’t disappeared.

DeepSeek challenged certain key assumptions about AI that had been championed by American executives like Sam Altman, CEO of ChatGPT-maker OpenAI.

“We were on a path where bigger was considered better,” according to Sid Sheth, CEO of AI chip startup d-Matrix.

Perhaps maxing out on data centres, servers, chips, and the electricity to run it all wasn’t the way forward after all.

Despite DeepSeek ostensibly not having access to the most powerful tech available at the time, Sheth told the BBC that it showed that “with smarter engineering, you actually can build a capable model”.

The surge of interest in DeepSeek took hold over a weekend in late January, before corporate IT personnel could move to stop employees from flocking to it.

When organisations caught on the following Monday, many scrambled to ban workers from using the app as worries set in about whether user data was potentially being shared with the People’s Republic of China, where DeepSeek is based.

But while exact numbers aren’t available, plenty of Americans still use DeepSeek today.

Certain Silicon Valley start-ups have opted to stick with DeepSeek in lieu of more expensive AI models from US firms in a bid to cut down on costs.

One investor told me for cash-strapped firms, funds saved by continuing to use DeepSeek are helping to pay for critical needs such as additional headcount.

They are, however, being careful.

In online forums, users explain how to run DeepSeek-R1 on their own devices rather than online using DeepSeek’s servers in China – a workaround they believe can protect their data from being shared surreptitiously.

“It’s a good way to use the model without being concerned about what it’s exfiltrating” to China, said Christopher Caen, CEO of Mill Pond Research.

US-China rivalry

CFOTO/Future Publishing via Getty Images People watch and learn about the Enflame DeepSeek all-in-one machine with DTU 3.0 chip at the 2025 World Artificial Intelligence Conference in Shanghai, China on July 28, 2025. CFOTO/Future Publishing via Getty Images

DeepSeek’s arrival also marked a turning point in the US-China AI rivalry, some experts say.

“China was seen as playing catch-up in large language models until this point, with competitive models but always trailing the best western ones,” policy analyst Wendy Chang of the Mercator Institute for China Studies told the BBC.

A large language model (LLM) is a reasoning system trained to predict the next word in a given sentence or phrase.

DeepSeek changed perceptions when it claimed to have achieved a leading model for a fraction of the computational resources and costs common among its American counterparts.

OpenAI had spent $5bn (£3.7bn) in 2024 alone. By contrast, DeepSeek researchers said they had developed DeepSeek-R1 – which came out on top of OpenAI’s o1 model across multiple benchmarks – for just $5.6m (£4.2m).

“DeepSeek revealed the competitiveness of China’s AI landscape to the world,” Chang said.

American AI developers have managed to capitalize on this shift.

AI-related deals and other announcements trumpeted by the Trump administration and major American tech companies are often framed as critical to staying ahead of China.

Trump’s AI czar David Sacks noted the technology would have “profound ramifications for both the economy and national security” when the administration unveiled its AI Action Plan last month.

“It’s just very important that America continues to be the dominant power in AI,” Sacks said.

DeepSeek has never managed to quell concerns over the security implications of its Chinese origins.

The US government has been assessing the company’s links to Beijing, as first reported by Reuters in June.

A senior US State Department official told the BBC they understood “DeepSeek has willingly provided, and will likely continue to provide, support to China’s military and intelligence operations”.

DeepSeek did not respond to the BBC’s request for comment but the company’s privacy policy states that its servers are located in the People’s Republic of China.

“When you access our services, your Personal Data may be processed and stored in our servers in the People’s Republic of China,” the policy says. “This may be a direct provision of your Personal Data to us or a transfer that we or a third-party make.”

Feature China/Future Publishing via Getty Images A peep into the office of Deepseek, in Hangzhou in east China's Zhejiang province Monday, March 03, 2025.
Feature China/Future Publishing via Getty Images

A new approach?

Earlier this week, OpenAI reignited talk about DeepSeek after releasing a pair of AI models.

These were the first free and open versions – meaning they can be downloaded and modified – released by the American AI giant in five years, well before ChatGPT ushered in the consumer AI era.

“You can draw a straight line from DeepSeek to what OpenAI announced this week,” said d-Matrix’s Sheth.

“DeepSeek proved that smaller, more efficient models could still deliver impressive performance—and that changed the industry’s mindset,” Sheth told the BBC. “What we’re seeing now is the next wave of that thinking: a shift toward right-sized models that are faster, cheaper, and ready to deploy at scale.”

But to others, for the major American players in AI, the old approach appears to be alive and well.

Just days after releasing the free models, OpenAI unveiled GPT-5. In the run-up, the company said it significantly ramped up its computing capacity and AI infrastructure.

A slew of announcements about new data centre clusters needed for AI has come as American tech companies have been competing for top-tier AI talent.

Meta CEO Mark Zuckerberg has ploughed billions of dollars to fulfil his AI ambitions, and tried to lure staff from rivals with $100m pay packages.

The fortunes of the tech giants seemed more tethered than ever to their commitment to AI spending, as evidenced by the series of blowout results revealed this past tech earnings season.

Meanwhile, shares of Nvidia, which plunged just after DeepSeek’s arrival, have rebounded – touching new highs that have made it the world’s most valuable company in history.

“The initial narrative has proven a bit of a red herring,” said Mill Pond Research’s Caen.

We are back to a future in which AI will ostensibly depend on more data centres, more chips, and more power.

In other words, DeepSeek’s shake-up of the status quo hasn’t lasted.

And what about DeepSeek itself?

“DeepSeek now faces challenges sustaining its momentum,” said Marina Zhang, an associate professor at the University of Technology Sydney.

That’s due in part to operational setbacks but also to intense competition from companies in the US and China, she said.

Zhang notes that the company’s next product, DeepSeek-R2, has reportedly been delayed. One reason? A shortage of high-end chips.

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China Telecom Global Shines at the 10th Belt and Road Summit, Empowering the New Silk Road via AI for Good

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HONG KONG, Sept. 10, 2025 /PRNewswire/ — From September 10 to 11, 2025, the 10th Belt and Road Summit was successfully held at the Hong Kong Convention and Exhibition Centre. China Telecom Global (CTG) participated prominently under the theme “Empowering the New Silk Road via AI for Good,” highlighting three core areas: the OneGrowth Global Partnership Initiative, AI global capabilities, and AI-driven applications. Through multiple benchmark cases, interactive scenarios, and physical displays, the exhibition systematically presented China Telecom’s cloud-network-intelligence-computing resource deployment and innovative AI applications along the Belt and Road, fully demonstrating its comprehensive strength and firm commitment to promoting regional collaborative development through digital technologies.

On the first day of the event, Ms. Wu Ting, AI Director of China Telecom Global, delivered a keynote speech titled “China Telecom Global: AI Blueprint and Capabilities”. She comprehensively presented CTG’s AI capabilities and architectural framework, highlighting a series of innovative achievements and practical applications in artificial intelligence. These included several cutting-edge AI products such as the OneTouch AI Engine, LLM Guardrail Platform, Enterprise No Code Agent Platform, and more, demonstrating CTG’s leading strength in artificial intelligence research and development and industrial application. Additionally, leveraging multiple demonstrated cases, she provided in-depth insights into CTG’s competitive advantages in building international digital infrastructure and delivering intelligent solutions for enterprises expanding globally.

At the summit, CTG featured a range of interactive highlights centered on its OneGrowth Global Partnership Initiative and global AI capabilities, comprehensively demonstrating its strength in AI+ technologies and ecosystem collaboration.

Empowering AI, Intergrow as One: Co-creating a New Digital Ecosystem

In the ” OneGrowth Global Cooperation Initiative” section, CTG highlighted its recently launched cooperation plan with a focus on three key ecological directions: AI+ Intelligent Empowerment, AI+ Comprehensive Mobile Global Cooperation, and AI+ Innovative Business, all guided by the four core principles of co-creation, sharing, co-governance, and win-win. The AI+ Intelligent Empowerment initiative is developing a global ecosystem computing power scheduling platform that integrates intelligent and general computing services while collaborating with partners to build scenario-based digital enablement platforms. The AI + Comprehensive Mobile Global Cooperation leverages a multidimensional mobile network covering “land-sea-air-space,” promoting cooperation in 5G, satellite communications, and Internet of Vehicles (IoV). Meanwhile, AI+ Innovative Business featured collaborations in visual network, exemplified by the transnational SeeLink Global Platform, which integrates AI algorithms, devices, cloud services, and applications to provide end-to-end solutions tailored to diverse customer needs.

Application in Action, Leadership in Intelligence, Interactive Demos Showcasing Technological Strength

In the “AI Global Capabilities” section, beyond showcasing its global digital infrastructure, the exhibit provided a clear overview of its resource network—including 53 submarine cables, 251 international PoPs (Points-of-Presence), and 15 overseas data centers. It also highlighted the capabilities and advantages of two major computing power engines: the AI data centers in Tseung Kwan O, Hong Kong, China and Jakarta, Indonesia. These demonstrate CTG’s core strength in reinforcing the foundation of the “Digital Silk Road” and supporting regional enterprises through digital transformation.

CTG prominently spotlighted its AI solutions and benchmark cases, including 5GC scenario applications and low-altitude economy service system. Through global applications such as supporting Chinese automotive companies expanding into Europe and assisting game developers in global operations, CTG demonstrated its deep practical achievements across Belt and Road markets. These cases underscore the company’ leading strength in driving industrial digital transformation and facilitating the global expansion of services.

Meanwhile, at the AI interactive experience and physical exhibition zone, CTG featured engaging activities such as AI-powered opera face-changing, a 5GC-enabled robotic dog, and the Tianshu drone. By seamlessly integrating traditional culture with cutting-edge artificial intelligence, CTG vividly demonstrated its innovative capabilities and technological expertise in cutting-edge fields such as 5G, AI, the Internet of Things, and the low-altitude economy. The interactive displays attracted extensive on-site participation and drew significant audience engagement.

During the summit, CTG engaged in on-site discussions with customers and partners from around the world to explore new opportunities within the Belt and Road digital economy. Moving forward, CTG will continue to leverage its strengths in cloud-network resources, AI technologies, and global services to provide efficient and reliable digital solutions for countries and regions along the route, further advancing the development of the “Digital Silk Road” to new heights.

Through its participation, CTG has fully demonstrated its capabilities as a world-class provider of digital-intelligent technology services in resource integration, technological innovation, and ecosystem influence. This exhibition underscored the company’s firm commitment to empowering high-quality development along the Belt and Road and co-creating a smart future through technological innovation.

SOURCE China Telecom Global



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OpenAI to Launch AI-Powered Jobs Platform — Campus Technology

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OpenAI to Launch AI-Powered Jobs Platform

OpenAI announced it will launch an AI-powered hiring platform by mid-2026, directly competing with LinkedIn and Indeed in the professional networking and recruitment space. The company announced the initiative alongside an expanded certification program designed to verify AI skills for job seekers.

The OpenAI Jobs Platform will use artificial intelligence algorithms to match candidates with employers based on demonstrated AI competencies rather than traditional resume keywords. The platform targets businesses seeking workers proficient in automation, prompt engineering, and AI implementation across various industries.

OpenAI is collaborating with major employers, including Walmart and Boston Consulting Group, to develop the platform’s functionality. Walmart, the largest private employer in the United States with 1.6 million workers, will initially provide free certification access to all US employees.

The Texas Association of Business plans to use the platform to connect local employers with candidates capable of supporting IT modernization projects, according to OpenAI’s announcement.

The company is expanding its OpenAI Academy, a free learning platform that has reached over two million users, to offer formal AI certifications. The program will cover skills ranging from basic workplace AI applications to advanced prompt engineering techniques.

Training and certification testing will occur within ChatGPT’s Study Mode, allowing candidates to prepare and complete credentials without leaving the application. OpenAI aims to certify 10 million Americans by 2030.

The initiative positions OpenAI against established players in the professional networking market. LinkedIn maintains over one billion members globally, while Indeed processes 27 hires per minute with 615 million registered job seekers.

The platform also competes with LinkedIn Learning’s educational offerings, potentially creating tension with Microsoft, OpenAI’s primary investor, with a reported $13 billion stake. Microsoft has previously identified OpenAI as a competitor in specific business segments despite their partnership.

Labor market data support OpenAI’s focus on AI competencies. Research by Lightcast analyzing over one billion job postings found that positions requiring AI skills offer salaries averaging 28% higher than comparable roles without such requirements. Jobs demanding multiple AI skills command premiums up to 43% above standard compensation levels.

The demand spans industries as companies integrate artificial intelligence into operations for task automation, data analysis, and product development. Employers increasingly seek workers capable of practical AI application rather than advanced technical programming skills.

The platform will allow employers to describe requirements in natural language, with AI systems identifying candidates who demonstrate relevant capabilities through portfolio work and practical experience. This approach differs from traditional keyword-based matching systems used by existing job platforms.

OpenAI’s system aims to surface candidates based on actual project experience and demonstrated competencies rather than resume optimization techniques commonly used on current platforms, the company said.

About the Author



John K. Waters is the editor in chief of a number of Converge360.com sites, with a focus on high-end development, AI and future tech. He’s been writing about cutting-edge technologies and culture of Silicon Valley for more than two decades, and he’s written more than a dozen books. He also co-scripted the documentary film Silicon Valley: A 100 Year Renaissance, which aired on PBS.  He can be reached at [email protected].







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Grand Forks believes in the future of AI and technology, Mayor Bochenski says at AI and Autonomy Summit – Grand Forks Herald

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GRAND FORKS — Grand Forks believes in the future of artificial intelligence and technology and is working to grow in those areas, Mayor Brandon Bochenski told an audience brought together to discuss AI and autonomous systems in Grand Forks and the state.

“We’re standing on the great work that’s happened before us, and just trying to enhance it and make it better,” Bochenski said. “There’s 10, 20 years of work that goes into Grand Forks being put on the map. I’m just grateful that we’re on the map today.”

His sentiments were echoed by others attending the summit, one of the Innovation, Workforce and Research Conferences put on by IEEE-USA, a technical professional organization. The event was held Wednesday, Sept. 10, at the University of North Dakota Memorial Union. Between discussions on state innovation, education, workforce, networking and investing in AI and autonomy, leaders in the fields of AI and autonomy spoke to its presence at UND, Grand Forks and North Dakota as a whole.

Scott Snyder, vice president for research and economic development at UND, mirrored Bochenski’s statement on the decades of work put into the community. UND has been on the “absolute cutting edge of uncrewed and autonomous technologies and systems for well over two decades,” he said. The university also has multiple private and university partners, as well as partnerships with the Department of Defense, National Aeronautics and Space Administration (NASA), Department of Homeland Security, Federal Aviation Administration and other federal government entities.

“UND is at the center of one of the most vibrant environments for the development and deployment of autonomous systems around the world,” Snyder said.

An example of engagement between UND and the federal government was a discussion between UND President Andrew Armacost and Phillip Smith, the program manager for the Tactical Technology Office at DARPA (Defense Advanced Research Projects Agency).

Smith admitted he doesn’t like the word “autonomy,” as he believes it acts similarly to words like “cyber” and “synergy” as jargon people use but don’t actually understand. Breaking down the subsections of autonomy and informing people is important, he said. When Armacost asked Smith what his definition of autonomy is, he said, “software that people don’t understand.”

“It is just an algorithm that cannot be explained to people until we get to general AI,” Smith said. “Humans actually don’t understand what is happening. … Machines are supposed to be serving humans, and humans don’t even know what they want, so that’s a really hard thing.”

Smith said DARPA is working with GrandSky, testing drones that will be able to find a ship at sea, and then orient and land on it without human connection. GrandSky is an aviation business park west of Grand Forks that specifically focuses on the UAS industry.

“That’s the program that we have out here in North Dakota testing, and it’s been really fun,” he said.

Armacost said each person in the room has the opportunity to engage with DARPA, including industry partners, university partners and others.

“They have a large number of avenues that they use to cooperate with their work on technology development,” he said.

The summit itself was the product of UND leaders interacting with IEEE-USA and having an interest in showcasing what the region is doing. Mark Askelson, vice president for research-national security, said he was at a Sioux Falls, South Dakota, summit with Ryan Adams, the dean of engineering and mines, and spoke with some IEEE-USA staff about possibly holding an event in Grand Forks. Askelson said it’s an opportunity to show what the region is doing to more people who don’t know about it. It also is helping forge new connections.

“Despite the fact that we are nationally recognized, I would argue in some of these areas, there’s still a lot of people that don’t know about us,” he said. “They don’t understand some of the things that we do, so that is a great opportunity to bring those people here so they can see us. And, in my experience, once we can get somebody on the ground to see what we have going on, the light bulb goes on for them. That creates more opportunity for us to work with them and for us to innovate.”





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