Q: How did the AI hype start?
A: OpenAI became the first American company to demonstrate that if you take a snapshot of the whole known internet and all digitized books in existence without worrying too much about copyright law, you can create a model so good that its output would be almost indistinguishable from that of a DC bureaucrat with mediocre intelligence.
Q: How is China involved?
A: As a part of its larger effort to contain China, the U.S. government has been on a mission of stopping Chinese companies from becoming leaders in different areas of technology. It has done so by wielding control over global supply chains and protecting American tech companies from competition in the process. The U.S. blocked Huaweiâs entry into the United States just as it was overtaking Apple to become the second biggest smartphone manufacturer in the world; it stopped European countries from installing Huawei manufactured 5G infrastructure when it was clearly more economical; and most recently, it passed legislation banning TikTok, a Chinese social media app that had become massively popular in United States and whose recommendation algorithm no American social media app had been able to outperform.
The U.S. claim that Huawei and other Chinese tech companies are inextricably linked to Chinaâs geopolitical strategy and put Western companies and people at heightened risk of surveillance and corporate espionage is, of course, grounded in reality. DeepSeek isnât shy about how much data it collects on its platform, including even your keystrokes
...
However, because DeepSeek is open source and can run locally on a separate device, Chairman Xi Jinpingâs prying eyes can be shielded.
Maintaining global technological dominance is one of the key concerns U.S. policymakers have repeatedly cited, and have identified AI as a crucial technology in maintaining that dominance. In 2018, when the U.S. government was in the process of banning Huawei, it realized that it would need to do the same with downstream technologies like semiconductor chips, the main component used in CPUs and GPUs. The severe chip shortage due to global supply chain disruptions during Covid-19 showed that advanced chips are a global supply chain bottleneck and a scarce resource. By 2022 the Biden administration had put comprehensive sanctions on China, stopping the export of these chips to the country and preventing Chinese AI companies from accessing the latest and most efficient GPUs. At the same time, it passed the CHIPS act, subsidizing national semiconductor manufacturing with over $50 billion.
