Markets tumbled and American AI leaders scrambled to release cheaper models following DeepSeek's launch. Tension grips the US tech sector as it faces the possibility of losing its position as the world's AI leader to China.
We spoke with two AI experts—Jonathan Baker, Principal Cloud Engineer at Nasdaq-listed finance automation platform BlackLine, and Danny Hammo, Founder and CEO of ExecAI—about DeepSeek's launch's domino effect and potential US responses.
Global power shift: "US players were caught off guard," says Hammo. "They were the dominant players in general AI and advanced model capabilities—they were the 'future makers.' However, DeepSeek changed the dominance equation. This new 'threat' will likely pressure US AI companies to accelerate their release cadence and perhaps launch a new generation of models earlier than planned."
Democratizing AI development: Looking ahead to 2025, Hammo predicts a surge of VC-backed startups, inspired by DeepSeek's demonstration that high-performance AI doesn't require astronomical budgets. "DeepSeek has shown that the barrier to entry is lower than imagined," he notes, suggesting the dawn of a new era in accessible, competitive AI development.
