DeepSeek Won't Sink U.S. AI Titans

By Dan GallagherUpdated Jan. 27, 2025 5:20 pm ETListen(3 min)You may also likeCloseCreated with sketchtool.Up NextCloseCreated with sketchtool.Embed code copied to clipboardCopy LinkCopy EmbedFacebookTwitterCloseCreated with sketchtool.Your browser does not support HTML5 video.0:10ADVERTISEMENTPausePlayingMuteCreated with sketchtool.Closed Captions InactiveCreated with sketchtool.Fullscreen InactiveCreated with sketchtool.Click for SoundPresident Donald Trump said the launch of a low-cost Chinese AI model should be seen as a wake up call for U.S. industries. Trump also announced plans to impose new tariffs on semiconductor imports. Photo: elizabeth frantz/ReutersNecessity might be the mother of all invention, but sparking the mother of all selloffs seemed like a stretch. That wasn’t the case Monday morning, though, as U.S. markets opened to fresh fears about DeepSeek. The Chinese artificial-intelligence startup announced a significant breakthrough late last week with AI models that perform nearly on par with advanced U.S.-born technology. The rub is that DeepSeek claims to have trained one of its latest models for $5.6 million in computing costs—a fraction of what is currently spent on this side of the Pacific on the same activity. OpenAI’s GPT-4 model that was launched in late 2023 cost more than $100 million to train, according to Chief Executive Sam Altman. In a podcast last year, Anthropic CEO Dario Amodei said the cost to train some models is approaching $1 billion. Copyright ©2026 Dow Jones & Company, Inc.

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