DeepSeek AI: China's New AI Sensation Tackles Trump's Tariffs and More

DeepSeek's Rise to Prominence

DeepSeek, a groundbreaking AI service from China, has taken the country by storm during the Lunar New Year holiday. Launched at a time when millions of Chinese users had ample vacation time, the AI app quickly became a source of national pride and fascination 1

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. Its popularity soared to such heights that it replaced ChatGPT as the most-downloaded app in Apple's App Store over the past week 1

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Tackling Political Questions

One of the most intriguing aspects of DeepSeek is its ability to address complex political questions. Wang Jiangyu, a law professor at City University of Hong Kong, tested the model by asking how China should react to U.S. President Donald Trump's imposition of 10% tariffs on Chinese goods 1

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DeepSeek's response was a comprehensive seven-point plan that included:

1. Targeting industries in states like Michigan and Wisconsin with new tariffs
2. Launching new tax breaks for industries in China
3. Setting technical standards for EV charging to create barriers for U.S. companies

Wang described the AI's thinking as "comprehensive, basically pragmatic and relevant" 1

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Censorship and Limitations

Despite its detailed responses on some political matters, DeepSeek exhibits clear censorship on certain sensitive topics. When asked about Chinese President Xi Jinping or the 1989 Tiananmen Square protests, the AI deflects with a standard response: "Let's talk about something else" 1

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Economic Insights and Predictions

DeepSeek has also shown prowess in providing economic insights. When asked about investment advice in light of Trump's tariffs, the AI suggested that Beijing might increase stimulus measures or launch new initiatives to support the tech industry 1

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Technical Achievements and Controversies

DeepSeek's latest AI models have been touted as being on par with industry-leading models in the United States, but at a fraction of the cost. The company claims to have trained DeepSeek-V3 with less than $6 million in computing power from Nvidia H800 chips, although some experts have questioned this assertion 1

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Personal Use and Pop Culture Impact

Beyond political and economic applications, many Chinese users have turned to DeepSeek for personal matters. Some have asked the AI to tell their fortunes or provide insights into their marriage prospects. The app's popularity has even made its Hangzhou-based startup and founder, Liang Wengfeng, pop-culture celebrities 1

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International Scrutiny

As DeepSeek's influence grows, it has attracted attention from international authorities. Countries including Japan, South Korea, France, Italy, and Ireland are investigating the app's use of personal data 1

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. This scrutiny highlights the growing global concern over AI technologies and data privacy.

Implications for the AI Industry

DeepSeek's rapid rise and claimed cost-efficiency have raised questions about the return on investment for U.S. tech giants that have pledged billions of dollars for AI development 1

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. This development could potentially reshape the competitive landscape in the global AI industry.