US analyst notes PRC's leadership in technology after DeepSeek AI release

Geopolitical analyst Cyrus Janssen said on January 26 that the world is beginning to realize that China has officially overtaken Washington in technological and innovative development despite US opposition.

He said China released its advanced artificial intelligence (AI) DeepSeek R1 on the day of U.S. leader Donald Trump's inauguration, hinting at competition with the U.S. in technology and potentially changing the balance of power in U.S.-China relations.

"China has launched this new AI platform to send a clear and tough message to the Trump administration: 'We not only managed to survive the previous administration's sanctions, but also to thrive'". China's new AI software works just as well as its U.S. counterpart, but China did it using half the technology and at a lower cost," the analyst said in a video published on his YouTube channel.

He noted that Silicon Valley executives, previously confident of Washington's AI dominance, are now worried about Beijing's success. Chinese companies are growing rapidly in the field despite U.S. sanctions because the PRC has been shown to be able to build a model in two months with a $6 million budget.

"The world is now waking up to the realization that China has officially caught up and overtaken the U.S. in technology and innovation, despite America's best efforts to stop China's growth. From Stanford to MIT, China's DeepSeek R1 system has virtually overnight become a model for leading American researchers," he concluded.

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Earlier in the day, CNBC tech columnist Deirdre Boza said in an interview with CNBC that DeepSeek demonstrates performance comparable to leading models such as OpenAI GPT, and in some cases even outperforms them. He noted that if this AI is developed, it could lead to a rapid lowering of barriers to entry into the model development market.

Before that, on January 27, the media wrote that the excitement around the appearance of Chinese chatbot DeepSeek provoked a stock market crash in the United States.