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The DeepSeek panic reveals an AI world ready to blow | James Vincent

The R1 chatbot has sent the tech world spinning – but this tells us less about China than it does about western neuroses

The arrival of DeepSeek R1, an AI language model built by the Chinese AI lab DeepSeek, has been nothing less than seismic. The system only launched last week, but already the app has shot to the top of download charts, sparked a $1tn (£800bn) sell-off of tech stocks, and elicited apocalyptic commentary in Silicon Valley. The simplest take on R1 is correct: it’s an AI system equal in capability to state-of-the-art US models that was built on a shoestring budget, thus demonstrating Chinese technological prowess. But the big lesson is perhaps not what DeepSeek R1 reveals about China, but about western neuroses surrounding AI.

For AI obsessives, the arrival of R1 was not a total shock. DeepSeek was founded in 2023 as a subsidiary of the Chinese hedge fund High-Flyer, which focuses on data-heavy financial analysis – a field that demands similar skills to top-end AI research. Its subsidiary lab quickly started producing innovative papers, and CEO Liang Wenfeng told interviewers last November that the work was motivated not by profit but “passion and curiosity”.

James Vincent was previously a senior editor at the Verge where he specialised in AI. His first book, Beyond Measure: The Hidden History of Measurement, was published in 2022

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