Have American tech companies completely misunderstood what they should do with Large Language Models? It certainly looks that way.

Less than a week after the new artificial intelligence platform DeepSeek sent investors spiraling in the United States, another AI model has popped up in China, claiming to be even better.

DeepSeek, a Chinese artificial-intelligence startup that’s just over a year old, has stirred awe and consternation in Silicon Valley after demonstrating AI models that offer comparable performance to the world’s best chatbots at seemingly a fraction of their development cost.

The sudden rise of Chinese AI app DeepSeek has leaders in Washington and Silicon Valley grappling with how to keep the U.S. ahead in the crucial technology.

Suspicions were confirmed when it was discovered that popular Chinese AI DeepSeek sends a tremendous amount of user data to servers in China.