How China’s DeepSeek Emerged Under Biden’s Chip Ban [Video]

Former President Joe Biden’s restrictions on foreign AI development may have pushed China to innovate, allowing it to produce DeepSeek at a fraction of the cost of U.S. artificial intelligence, experts told Newsweek.

The Chinese AI chatbot was able to be trained in just two months for $6 million, despite attempts from the Biden administration to restrict China’s foothold in the industry. It sparked the largest single-day loss in stock market history, Nvidia shedding $592 billion from its market cap on Monday.

Newsweek contacted the White House and DeepSeek for comment on the app’s development via email.

Why It Matters

The fact that DeepSeek achieved similar results with a fraction of the cost is a huge threat to U.S. control over the AI industry, something that both President Donald Trump and Joe Biden have attempted to maintain. The success of DeepSeek indicates that those attempts have not worked.

DeepSeek is both open-source, making it …