[Christian Harris]

DeepSeek’s recent advancements in AI may have significant implications for the US-China tech rivalry and may influence future US policy decisions.

Impact On The US-China Tech Competition

DeepSeek, a Chinese AI startup, has developed models that rival leading US counterparts, achieving comparable performance with fewer resources.

This progress challenges the effectiveness of US efforts to limit China’s technological growth through export controls and sanctions.

Despite restrictions, DeepSeek utilised US-sourced Nvidia chips and possibly American data, highlighting China’s continued access to critical technologies.

Potential For Stricter US Sanctions

In response to DeepSeek’s achievements, there is a growing call among US lawmakers and industry leaders for more stringent measures.

Alexandr Wang, CEO of Scale AI, is scheduled to meet with White House officials and Congress to discuss the challenges posed by China’s AI advancements.

These discussions may lead to tighter export controls and clearer federal AI standards to maintain U.S. technological leadership.

However, some experts argue that simply imposing stricter sanctions may not be effective.

DeepSeek’s success suggests that current US strategies might inadvertently encourage Chinese firms to innovate more efficiently.

This situation indicates that the US may need to adopt a more comprehensive approach, including securing semiconductor supply chains, enhancing education, and attracting foreign talent, to sustain its competitive edge.

Impact On US Stocks

The success of DeepSeek could prompt more aggressive actions from US lawmakers to secure US leadership in AI, leading to new opportunities or challenges for companies involved in AI development.

Investors may be drawn to stocks of companies that benefit from government backing or those that are positioned to lead the next wave of AI breakthroughs.

Sources: The Atlantic, New York Post

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[ABTrading 87]

I don’t really get why the US is bothering with all this. Let them have access, they will get it anyway, and have a fair fight. If US firms and minds are as supreme as they say, capitalism will see them rewarded. It;s the space race all over again.

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[Christian Harris]

One word: jobs.

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[Steve]

It’s also because of concerns about national security but yes, I largely believe it’s the economic competition, i.e. jobs, that’s the real sticking point.

Experts think the nation that cracks artificial general intelligence (AGI) first will get whopping military, economic and scientific benefits.

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[Steven]

Any insights into which stocks might get government backing or lead the next wave if I can be cheeky enough to ask

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[Christian Harris]

Watch Intel (NASDAQ: INTC)—its stock surged over 7% after US VP J.D. Vance voiced strong backing for US semiconductor manufacturing.

With a push to keep AI chip production domestic, Intel stands to gain from these policies.

Ongoing trade disputes and regulatory changes will play a key role in shaping the industry’s future.

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[Steven]

Hmmm. I had thought (maybe incorrectly) that they were falling behind in the industry, especially vs. the likes of Nvidia and AMD.

I also read it was having problems with its manufacturing/ product system.

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[Christian Harris]

Vice President JD Vance’s recent statements about the Trump administration’s desire for AI chips to be designed and manufactured domestically have boosted investor optimism.

This policy stance could significantly benefit Intel, as it operates fabrication facilities within the United States, unlike competitors such as AMD and Nvidia.

Intel Soars 23%, Best Week Since 2000

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