DeepSeek's rattling of US tech stocks could change how America sanctions China: analysts

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DeepSeek's rattling of US tech stocks could change how America sanctions China: analysts

^{Published on 2025-01-28 22:02:16 - MSN}

But no consensus on whether impact of Chinese AI start-up will hasten tech decoupling of the two economies or sow greater partnership The earthquake that struck US tech stocks this week over the advance of Chinese artificial intelligence start-up DeepSeek is sending shock waves beyond Wall Street and Silicon Valley,

The article from MSN discusses how DeepSeek, a Chinese AI startup, has introduced a new AI model that has caused a stir in the U.S. tech sector, potentially affecting how the U.S. might approach sanctions against China. DeepSeek's model, which rivals those from major U.S. tech companies, was developed using publicly available data and open-source tools, bypassing the need for advanced U.S. chips that are currently under export controls. This development has led to a drop in U.S. tech stocks as investors worry about losing competitive edge. Analysts suggest that this could prompt the U.S. to reconsider its sanction strategies, possibly expanding restrictions to include more technologies or tightening existing controls to prevent China from advancing in AI and other critical tech sectors. The situation underscores the complexities of global tech competition and the limitations of current sanction frameworks in controlling technological proliferation.

Read the Full MSN Article at:
[ https://www.msn.com/en-xl/technology/artificial-intelligence/deepseek-s-rattling-of-us-tech-stocks-could-change-how-america-sanctions-china-analysts/ar-AA1y1OYw ]

Contributing Sources

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DeepSeek's rattling of US tech stocks could change how America sanctions China: analysts