How China’s New AI Model DeepSeek Is Threatening U.S. Dominance

A little-known AI lab out of China has ignited panic throughout Silicon Valley after releasing AI models that can outperform America’s best despite being built more cheaply and with less-powerful chips. DeepSeek, as the lab is called, unveiled a free, open-source large-language model in late December that it says took only two months and less than $6 million to build. The new developments have raised alarms on whether America’s global lead in artificial intelligence is shrinking and called into question big tech’s massive spend on building AI models and data centers. In a set of third-party benchmark tests, DeepSeek’s model outperformed Meta’s Llama 3.1, OpenAI’s GPT-4o and Anthropic’s Claude Sonnet 3.5 in accuracy ranging from complex problem-solving to math and coding. CNBC’s Deirdre Bosa has the story. This video also includes Bosa’s full interview with Perplexity CEO Aravind Srinivas. Chapters: 00:00 - 00:47 Introduction 00:47 - 5:33 DeepSeek’s triumph 5:34 - 10:53 America undermined 10:54 - 15:04 Necessity is the mother of invention 15:05 - 40:16 Full interview with Perplexity CEO, Aravind Srinivas Anchor: Deirdre Bosa Produced by: Jasmine Wu, Laura Batchelor, Drew Troast Edited by: Matt Soto Senior Director: Jeniece Pettitt Additional Footage: Getty Images