The Chinese Communist Party would like you to think that a new AI giant has burst onto the scene and is poised to overthrow the world’s technical environment.
Companies fell, and so-called business whisperers predicted a new world order coming in technology. The largest market loss in history occurred when Nvidia, one of the most significant tech companies on the planet and a major contributor to the property rally last year, lost nearly$ 600 billion in market value in a single day.
All thanks to DeepSeek, a fresh AI engineering company that is allegedly producing an AI software that can compete with ChatGPT for a fraction of the price. Chinese AI technology has lagged behind American AI for the past few years, according to several reports, but DeepSeek’s advancements have propelled the socialist country to the forefront of AI growth.
Some of the promises made recently about DeepSeek’s abilities are nothing short of amazing. Tech investor Marc Andreessen praised DeepSeek’s “amazing and amazing achievements”. Experts made the claim that DeepSeek’s AI could run much more quickly than ChatGPT’s, which would require a smaller amount of computing power. Yet Nvidia, trying to downplay its costs, called DeepSeek an “excellent AI progress” when asked by CBS News.
And DeepSeek allegedly created its cutting-edge AI for a price tag of only$ 6 million. For contrast, OpenAI, the creator of ChatGPT, has operated on huge costs for the past few years, north of half a billion dollars total, and technology companies like Microsoft have invested billions of dollars into OpenAI’s work.
Alibaba, a Chinese technology firm, announced early on Wednesday that it had developed an AI type superior to DeepSeek’s.
Maybe, just maybe, the Chinese have the skills to create ultra-cheap AI and are prepared to alter the world’s technical environment with their hard work and good old Foreign innovation ( as well as the CCP’s intelligent administration ). However, a cherished saying still rings true: If it seems too good to be true, it likely is.
Much more likely than not, the Chinese are lying through the nose about the estimated costs of their fresh AI and how they developed this new technologies. Tech tycoon Palmer Luckey called DeepSeek’s AI “legitimately spectacular” but called the supposed growth cost “bogus” and clearly admonished those who have blindly parroted” Foreign propaganda”.
The whole thing stinks of a Chinese ops to prevent British AI development, generate money cutting Western tech stocks, and hit a blow at Nvidia. According to history, China’s seemingly miraculous recent Great Leap Forward in the AI sector is most likely the result of a concerted effort to smuggle American tech companies and steal their technology. In fact, late on Tuesday, Bloomberg reported that Microsoft and OpenAI have opened an investigation into whether a group affiliated with DeepSeek improperly gained access to significant OpenAI data.
And their agents in this scheme aren’t James Bond-esque spies deftly slipping past lasers and circumventing fingerprint-encrypted doors. They’re the “highly skilled” workers we’ve invited into Silicon Valley through H-1B visas.
Over the past few decades, China has developed a reputation as a global leader in industrial espionage. According to the U.S. Trade Representative, Chinese theft of U.S. intellectual property amounts to anywhere between$ 225 billion and$ 600 billion annually. Since 2000, the Center for Strategic and International Studies has identified more than 200 cases of Chinese espionage in the United States alone. Of those incidents, 54 percent” sought to acquire commercial technologies”, and 90 percent of the perpetrators involved were Chinese nationals.
Chinese nationals account for the second highest number of H-1B recipients, after Indians. Specifically, China represents the top source for” top-tier” AI researchers for Silicon Valley, according to Business Insider.
The first Trump administration recognized the threat of Chinese industrial espionage, launching the” China Initiative” in 2018 to root out Chinese spies in U. S.companies and universities. The Biden administration canceled the program in 2022 after allegations of racism, despite the success of catching several Chinese agents, including Harvard Professor Charles Lieber.
According to the Financial Times, even tech companies like Tesla and Google have started to be wary of Chinese employees because of stricter personnel screening standards. In March 2024, U.S. prosecutors charged Linwei Ding, a Chinese national who worked for Google, with attempting to sell hundreds of secret files related to Google’s AI to Chinese companies.
The Soviet bloc, particularly Romania, allegedly negotiated goodwill and cooperation with the United States and Western Europe during the Cold War. According to Lt. Gen. Ion Pacepa, the head of Romania’s secret police who defected to the West, Nicolae Ceauşescu made it the country’s policy to simply steal as much Western technology as possible. Economic missions to Western nations would be packed with Romanian spies who would steal blueprints, prototypes, and technical manuals.
Imagine what a backwater nation like Romania could do if it could flee with billions of dollars worth of Western technology. It would be the same as a nation with much more resources and a strong ally with the Western ruling class.
President Donald Trump made a recent announcement to collaborate with ChatGPT’s creators to build a$ 500 billion AI infrastructure project that could once more establish the United States as the undisputed leader in AI technology. But how useful would it actually be if Chinese agents could steal our technological secrets and return them to Beijing for less labor and expense?
Given the scope and breadth of China’s industrial espionage efforts over the last few years in the American tech sector, it almost certainly comes at the expense of American companies. The Chinese, like all communists, are thieves first and foremost, and their most effective agents are hiding in plain sight in America’s tech giants.
If China emerges as the leader of the AI race between the United States and China, it will have unfathomable effects on American national security. Trump should reenergize his” China Initiative” from his first term and expand it by reducing Chinese nationals ‘ access to H-1B visas. Our enemy has an unfair advantage by keeping hostile foreigners in this nation and inviting more each year. They are an unacceptable threat to our technological superiority over our greatest geopolitical adversary, and we don’t need them here in the first place.
Hayden Daniel is a staff editor at The Federalist. He previously held positions as deputy editor/opinion editor at The Daily Caller and The Daily Wire’s editor. He received his B. Washington and Lee University offers an A. in European history with minors in philosophy and classical studies. Follow him on Twitter at @HaydenWDaniel