Chinese Citizens Celebrate DeepSeek’s Achievement, Mock US Chip Restrictions

As the global impact of DeepSeek’s affordable artificial intelligence model reverberates worldwide, many in China are celebrating the homegrown startup as a monumental national breakthrough with the potential to reshape history. The excitement surrounding DeepSeek, which has been likened to “AI’s Sputnik moment” by tech luminaries such as Marc Andreessen, began to swell in China even before global markets reacted dramatically on Monday to the implications of DeepSeek’s accomplishment.

Feng Ji, co-founder of Game Science, expressed his elation on Weibo, stating, “DeepSeek may be a technology achievement that can change a nation’s fortune.” Feng, who is also the producer of the popular game Black Myth: Wukong, added, “Such a stunning breakthrough comes from a pure Chinese company.” DeepSeek’s new open-source AI model rivals or surpasses leading US developers, challenging many assumptions in Silicon Valley about the economics of AI development and the extent of America’s lead over competitors in China.

The hype surrounding DeepSeek triggered a nearly $1 trillion decline in US and European technology stocks as investors questioned the spending plans of some of America’s largest companies. For China, this technology represents a significant leap forward in its efforts to thrive despite US restrictions on its access to essential components for chips and AI, although Beijing still faces challenges. Tech giants like Huawei Technologies Co. and Semiconductor Manufacturing International Corp. are believed to be several generations behind industry leader Taiwan Semiconductor Manufacturing Co.

The enthusiasm for DeepSeek is the culmination of a series of tech triumphs in recent years that have bolstered Chinese citizens’ confidence and pride in domestic talent. The latest breakthroughs range from Huawei’s Mate 60 Pro phone, which uses an advanced locally made chip, to the social media platform Xiaohongshu. Hu Xijin, former editor-in-chief of China’s state-backed newspaper Global Times, praised DeepSeek for being “the first Chinese startup to have such a profound impact on the expectations of an entire industry.” He wrote on Weibo, “The company ‘shook the myth of America’s invincibility in high tech’ and raised an ‘explosive question mark’ over the US model of developing technology with an unparalleled amount of investment.”

For some Chinese, it was DeepSeek’s success in defying the restrictions that mattered most, especially as the country now finds itself in Donald Trump’s crosshairs after months of pressure from the Biden administration. One Weibo user commented, “The US stock rout shows that US actions, including Biden’s tech containment and ban on Nvidia’s export of advanced chips to China, have failed completely. Not only was it a failure, they also hurt themselves more than they did their enemy.”

Given the constraints on Chinese mainlanders in accessing AI tools and software abroad, DeepSeek was for many their first encounter with such advanced artificial intelligence-generated advice. Some internet users who shared their experience with DeepSeek’s AI model were in awe of its ability to produce sophisticated essays and stories based on instructions. Others declared that it’s capable of being their personal therapist or close friend, offering useful counsel and suggestions at the ready.

One DeepSeek answer went viral above all others in China, revealing that its model didn’t lack modesty either. In explaining the plunge in Nvidia’s stock, the AI model cited six factors, including interest-rate expectations, the US chip maker’s high valuations, and industry competition. “These factors combined led to the plunge in Nvidia’s shares, and it has nothing to do with DeepSeek,” according to an answer posted by Weibo users including Hu.