China has narrowed the artificial intelligence (AI) development gap with the United States to just three months in certain areas, according to Lee Kai-fu, the CEO of Chinese AI startup 01.AI.
Lee, a key figure in the global AI landscape and former head of Google China, highlighted that firms like DeepSeek have found innovative ways to use chips and apply algorithms more efficiently, propelling China closer to catching up with the U.S.
Lee made these remarks in an interview with Reuters, noting that the launch of DeepSeek’s AI reasoning model in January marked a significant milestone. The model, trained with less advanced chips, was cheaper to develop compared to Western counterparts, challenging the assumption that U.S. sanctions were stalling China’s AI sector. "Previously, the gap was six to nine months in many areas. Now it’s probably just three months behind in core technologies, and actually ahead in some specific areas," Lee said.
He added that Washington’s semiconductor sanctions had presented short-term challenges for Chinese firms but had also spurred innovation. Lee pointed out how Chinese companies, like DeepSeek, had developed new algorithms under constraints, including a novel approach to reinforcement learning. This method shows users the reasoning behind AI decisions, a capability first developed by OpenAI but not yet available to users in its current form.
Since the launch of OpenAI’s ChatGPT in late 2022, China’s tech sector has rapidly entered the generative AI race, but DeepSeek’s breakthrough has marked a key turning point. Until DeepSeek’s release, many Chinese tech leaders had expressed concerns about their lag behind Western rivals.
Lee, who founded 01.AI in March 2023, emphasized that investing in proprietary models was a "courageous" move for startups in a market dominated by well-established giants and fast-evolving open-source alternatives. While many of China’s top tech companies, including Baidu, Alibaba, and ByteDance, are building foundational models, 01.AI is focusing on practical AI applications, such as software solutions that help clients deploy AI technology effectively.
Earlier this month, 01.AI launched Wanzhi, a software platform designed to assist enterprises in adopting AI solutions. The company has already begun generating revenue, and Lee expects substantial growth in 2025, projecting that revenue will significantly exceed the $15 million achieved in 2024.
U.S. Commerce Department bureaus have reportedly issued a blanket ban on the Chinese AI model DeepSeek for use on government-furnished equipment, according to sources and a mass email seen by Reuters.
Chinese retail investors are increasingly turning to DeepSeek and other artificial intelligence tools to navigate the stock market, marking a significant shift from last year’s government crackdown on computer-driven quantitative trading.
The Trump administration is reportedly considering a ban on the Chinese AI chatbot DeepSeek from U.S. government devices over national-security concerns, according to a source familiar with the matter.
Elon Musk-owned artificial intelligence firm xai has acquired a 1-million-square-foot property in southwest Memphis, the Greater Memphis Chamber reported on Friday.
Chinese AI startup DeepSeek has stirred conversation in the tech community by claiming that its AI models could achieve a “cost profit margin” of 545% under ideal conditions.
At least 15 people have died as wildfires continue to ravage South Korea’s southeastern region, Yonhap News Agency reported on Wednesday.
Russia and Ukraine have agreed to suspend attacks on key energy infrastructure for 30 days, according to a statement published by the Kremlin on Tuesday.
The Department of Energy (DOE) has instructed its employees to label documents related to the agency’s review of grants and contracts under the controversial DOGE initiative with "legal privilege," in a bid to prevent them from being disclosed under the Freedom of Information Act (FOIA).
OpenAI has unveiled significant updates to its Advanced Voice Mode feature for ChatGPT, making its AI voice assistant more personable and responsive to user needs.
Slovakia has declared an emergency situation following the discovery of foot-and-mouth disease on three farms in the southern part of the country, the government announced on Tuesday.
Sweden’s Prime Minister Ulf Kristersson stated on Thursday that purchasing U.S. weapons does not pose a security risk for his country, but emphasized the need for Europe to reduce its reliance on American defense systems. His comments come amid growing discussions within Europe.
NASA astronauts Butch Wilmore and Suni Williams completed an unexpectedly long 286-day mission on the ISS, returning to Earth aboard a SpaceX capsule after delays caused by technical issues with Boeing’s Starliner.
Mexican forces have dismantled a massive meth lab in Zacatecas, dealing a blow to a Sinaloa Cartel faction.
Serbia’s parliament has officially accepted the resignation of Prime Minister Milos Vucevic, setting a 30-day deadline for the formation of a new government or the calling of snap elections.
A devastating overnight drone attack on Kyiv, attributed to Russian forces, resulted in the deaths of three people, including a five-year-old child, and left ten others injured.
The Department of Energy (DOE) has instructed its employees to label documents related to the agency’s review of grants and contracts under the controversial DOGE initiative with "legal privilege," in a bid to prevent them from being disclosed under the Freedom of Information Act (FOIA).
The Ministry of Foreign Affairs of Armenia hosted the presentation of the Armenian translation of the book by Iran's Foreign Minister Seyed Abbas Araqchi, titled "The Power of Negotiations: Principles and Rules of Political and Diplomatic Negotiations."
Armenian Parliament Speaker Alen Simonyan stated on Tuesday that there are no expected changes in Armenia’s relations with the Collective Security Treaty Organization (CSTO), despite ongoing discussions regarding the country’s stance on the military alliance.
Armenian Prime Minister Nikol Pashinyan has met with a delegation led by Iranian Foreign Minister Seyed Abbas Araghchi, who is in Yerevan on an official visit.
Armenian Foreign Minister Ararat Mirzoyan, speaking at a joint press conference with Iranian Foreign Minister Abbas Araqchi, highlighted the significance of the existing economic cooperation between the two countries.
At least 15 people have died as wildfires continue to ravage South Korea’s southeastern region, Yonhap News Agency reported on Wednesday.
Russia and Ukraine have agreed to suspend attacks on key energy infrastructure for 30 days, according to a statement published by the Kremlin on Tuesday.
The Department of Energy (DOE) has instructed its employees to label documents related to the agency’s review of grants and contracts under the controversial DOGE initiative with "legal privilege," in a bid to prevent them from being disclosed under the Freedom of Information Act (FOIA).
OpenAI has unveiled significant updates to its Advanced Voice Mode feature for ChatGPT, making its AI voice assistant more personable and responsive to user needs.
Slovakia has declared an emergency situation following the discovery of foot-and-mouth disease on three farms in the southern part of the country, the government announced on Tuesday.
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