What you need to know about DeepSeek

I’ve been saying it for years: The country that masters AI will dominate the world economically, politically and militarily. Since ChatGPT dropped, the U.S. seemed untouchable. Most of us Americans assumed we were a couple of years ahead of China in terms of AI, but the game has changed — and fast.

The latest version of DeepSeek AI, an open-source model out of China, is so good, it tanked U.S. tech stock prices (Nvidia lost $593 billion in value!), shot to No. 1 in the Apple App Store overnight and now has the entire world wondering, “If this is what China is showing us, what’s next?”

Move over, OpenAI

DeepSeek was founded in May 2023 in Zhejiang, China. Its first models were nothing to write home about; the latest release, DeepSeek-V3, is another story.

It was developed in just 55 days, trained on 671 billion parameters and performs as well as (or better than) Meta’s Llama, OpenAI’s GPT-4o and Anthropic’s Claude Sonnet 3.5 in math, coding and reasoning. Let that sink in. It took China just two months to beat the American giants.

The money is where it gets really interesting. OpenAI spent $5 billion on its model in just one year. Google shelled out $50 billion on AI development in 2024. Microsoft has invested $13 billion into AI partnerships.

What about DeepSeek? They spent $5.6 million. It’s a cheap Chinese knockoff.

How’d they do it? 

China put together a group of young, ambitious, super-smart engineers and researchers who worked under strict limitations. The official story is they couldn’t use Nvidia’s top-tier H100 chips because of U.S. export restrictions. Instead, they worked with less powerful H800 chips.

Rumors suggest China started with over 10,000 super-powered H100 Nvidia AI chips purchased before the Biden administration’s sanctions kicked in. There are also whispers they stole OpenAI’s code as the foundation for DeepSeek-V3.

But here’s the thing: Even if they took someone else’s code, it doesn’t matter anymore. DeepSeek runs efficiently on far fewer chips, uses less electricity and is cheaper to operate than its American counterparts.

The real game-changer is right here

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Chinese researchers broke encryption

Look at these two headlines:

So, who’s right?

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🚨 Black Friday alert: Chinese scammers are imitating big brands like L.L. Bean and Ikea with “deals” up to 80% off. They use tracking pixels in Meta and TikTok to detect your location and translate the site so it looks legit. Don’t fall for too-good-to-be-true offers, and shop on official sites only!

17

Solution the French-governed AI chatbot gave to 5(3+2). (The answer is 25.) The bot, Lucie, also said, “Cow’s eggs, also known as chicken’s eggs, are edible eggs produced by cows.” The bot is offline now. So, to recap, we need to worry about China in the AI race and definitely not France. Noted.

500,000 fans

On Xiaohongshu (China’s Instagram) for Maye Musk. Elon’s gorgeous mom has been a model for many years and is a superstar in China. At 75, she’s a top silver-haired influencer. Maye we all be this fabulous.

100 miles

How far a Chinese ship dragged its anchor, cutting two Baltic Sea internet cables. Investigators suspect they cut the critical data cables on purpose, in part because it’d be nearly impossible not to notice dragging an anchor that far. The carrier left a Russian port a couple of weeks ago, packed with fertilizer. Both countries say, “Nope, not us.”

1,000-plus

Fake news sites tied to China that were just blocked by Google. The Glassbridge network was trying to pass off communist propaganda as “journalism.” One firm ran over 600 sites. The real question: Why did it take Google this long to spot and remove them?

Have you seen these missing robots? In China, 12 robots were “kidnapped” from a robotics showroom by … another robot. CCTV video shows the robot thief breaking in and convincing the other machines to quit their jobs. The viral moment was just a test but still gives me the willies.

🚨 Be smart; don’t put anything in your cart: A Chinese fraud network is using thousands of fake online stores to steal credit cards. They’re impersonating brands like The North Face, Ikea and Wayfair with (fake) massive discounts. Red flags? Many sites have “blackfriday” in the domain name and end with .shop, .store, .vip or .top.

💸 Amazon’s new budget battleground: Say hello to Amazon Haul, their latest venture geared toward selling ultra-cheap items (think under $20). Why? Because Shein and Temu are mopping the floor with Amazon. With Haul, expect to find items like $2 earrings, $10 blenders and, yes, even a $20 wedding dress. (Pro tip: Don’t walk down the aisle in that!) Don’t expect Prime’s speedy shipping, either; your order will take one or two weeks since it’s coming from China. Heads-up: You can only shop Amazon Haul through the Amazon app for now.

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Not exactly brag-worthy: The federal Cybersecurity and Infrastructure Security Agency is tooting its own horn for no successful hacks during the U.S. election. That doesn’t mean there wasn’t interference. Russia ramped up its disinformation campaigns on social media, and several bogus bomb threats made at polling stations were traced back to them. And don’t forget China hacked phones belonging to President-elect Trump and JD Vance.

POV: The hottest career in China RN
Instagram.com/ChinaInsider

Look how some livestreamers in China who sell clothes do their work.

🤖 Tough decisions: Should AI weapons be fully autonomous and allowed to make deadly decisions? The big fear is that enemy states like China may go all in on AI weapons first, while the U.S. still needs someone to press a button each time to fire. FYI: While the U.S. military doesn’t buy fully autonomous weapons yet, companies here aren’t banned from making or selling them.

🇨🇳 Communist China-based hackers are the suspects: Yup, they’re the ones suspected of breaking into three major telecom companies and causing major outages — AT&T, Verizon and Lumen Technologies. Details are scarce, but the hackers probably gained access to the systems used for court-approved wiretapping and eavesdropping. Truly frightening.

👀 Spy on me: TikTok is legally required to share user data with the Communist Chinese government, but a recent survey shows 68% of Americans don’t support banning the app. Arguments include: 1.) “The U.S. government has more access to info than China,” and 2.) “I’ve got nothing to hide.” My take: It’s not only about the data; it’s about China being able to use 170,000,000 devices in America for a coordinated cyberattack on our communications network, power grid or worse.

3,600-year-old cheese

Found buried with Bronze Age mummies in northwestern China. It took researchers a decade of DNA analysis to determine the substance was, in fact, the world’s oldest cheese. Un-brie-lievable.

🇨🇳 Patreon copycat: Communist China app TikTok’s new Subscription feature lets you offer paying subscribers exclusive content, like videos, notes and unique badges. To qualify, you must be 18 or older and have at least 10,000 followers and 100,000 views in the past calendar month. I wouldn’t put my efforts into this until we know what’s going on with the ban.

The clock is TikTok-ing: A three-judge panel just heard TikTok’s argument against splitting from ByteDance, a company with direct ties to Communist China. They say 170 million Americans use TikTok (think of that loss of productivity!) and questioned why other Chinese-owned apps like Temu and Shein aren’t being targeted the same way. I hope Mr. Wonderful’s idea of letting everyday Americans buy TikTok comes to fruition.

🚫 Another China ban: The House of Representatives just voted to ban new DJI drones in the U.S. The Chinese spy balloon incident, along with China’s threats to invade Taiwan and drag America into a Pacific war, have led to real concerns about China collecting intricately detailed maps of the U.S. and its infrastructure through the millions of DJI drones flown by innocent Americans. You can still buy one, but if the bill passes, flying new models will be off-limits.

🚨 All that and dim sum: Researchers dug into Communist China-owned TikTok’s algorithms and found they suppress content critical of the Chinese Communist Party. Search for “Xinjiang,” a region linked with genocide and crimes against humanity, and you’ll find only 2.3% of results are anti-China. Compare that to 21.7% on YouTube. And the cherry on top? They’re not above manipulating teens with pro-China propaganda.