The stunning rise of Deepseek, which triggered losses in technological giants, threatened to directly the sovereignty of America that seemed to have been consolidated just a week ago.

The fact that a little well -known Chinese startup has built a model that can compete with the top US artificial intelligence systems questioning the rule that says it needs a lot of money and unlimited access to cutting -edge chips for AI technology training. Normally it would not be possible for a Chinese newly established artificial intelligence company to compete with Openai’s GPT-4O and Google’s Gemini.

Now, President Donald Trump has to decide how to answer.

The United States has imposed hard restrictions designed to prevent Chinese companies from buying or manufacturing their own cutting -edge chips needed to educate artificial intelligence models. These chips are at the center of artificial intelligence armaments and the goal of export restrictions is to prevent China from being able to keep up.

Some have argued that Deepseek’s success, who claims to have trained her new AI R1 model with a fraction of cost and using much less high -quality chips than top artificial intelligence models, shows that Biden’s and First Trump export restrictions Failed: Hard restrictions may have crushed Beijing in a corner, forcing Chinese companies to find ways to innovate or create their own brands.

“Instead of blocking China, these controls on the export of artificial intelligence can accelerate the ability to develop artificial intelligence by pushing it to innovate,” John Villasenor, a professor of engineering and law in UCLA, told CNN. “Export checks, undoubtedly, are counterproductive.”

This development would be a blow to the strict restrictions imposed both by Trump and former President Joe Biden, but also to those planned by the new Trump government.

“We accidentally upgraded their technical game,” researcher Ai Gary Marcus wrote in a post on the Substack. “It’s clear that the game has changed.”

This assessment that punitive restrictions may have had the opposite effect of what the United States aimed, raises questions about competition in artificial intelligence, technological equipment between the United States and China and how the Trump’s government must react.

Ai House of Cards Theory

Trump can be unmistakable on the issue of export restrictions.

“I believe Trump’s pressure is reinforced,” said Ed Mils, a policy analyst, noting that Trump has been surrounded by hawks against China, such as Foreign Minister Mark Rubio. “His advisers around him call for more restrictions, no less.”

If Trump exerts even greater pressure on China on the issue of artificial intelligence, supporters of a more aggressive strategy believe her venture can collapse. Skeptics again argue that the success of Deepseek was possible either by creating high -quality chip reserves before imposing restrictions or by buying semiconductors on the black market.

“It is either truly annoying or misleading the result if they were based on Nvidia chips and others before export restrictions,” Jeffrey Sonnefeld, a senior dean at the Yale School of Management, told CNN.

Sonnnfeld added that if it was a “sputnik moment”, such as when Russia surprised the US with the satellite launched in 1957, it is a blow to pure dependence on competitive private markets without government cooperation and national industrial policies. “

Scale AI chief executive Alexandr Wang told CNBC that he understands that Deepseek has 50,000 cutting -edge chips for which “they cannot speak, obviously, because they have bypassing export controls implemented by the United States”.

Art Hogan, head of the market strategy at B. Riley Wealth Management, urged investors to accept Deepseek’s allegations “with skepticism” because there is no specific proof to support them.

“China claims to have found the silver sphere, but it could be like the boy in high school that says she has a girl, but she is just in a different school,” Hogan said, noting that there is a long time skepticism between the Western Economists on the accuracy of China’s financial statistics.

If Deepseek actually had a cutting -edge access, then the argument that export controls should become stricter. Mills notes that there is a “very active” black market for high quality chips. “

“There are still glaring windows that must be closed,” Mills said, pointing out the need for more powerful imposition and further restrictions on the flow of cutting -edge chips.

Jake Sullivan, a US National Security Advisor under Biden, has recognized that export controls are ongoing.

“This is a repeat process. We learn, they learn. We learn, they are learning, “Sullivan said in May, noting that China tried to crush export controls.