DeepSeek, AI, and the Geopolitical Battle for Tech Supremacy

The war for technological dominance has long been fought in the field of artificial intelligence (AI), but it has recently become more interesting. This brings us to DeepSeek, a little-known Chinese AI startup that has managed to shake up the conventional system. How? By claiming it can match, or even exceed OpenAI’s capabilities with a much lesser investment and without access to the latest US-made chips.

This is not just another AI breakthrough; it’s a geopolitical flashpoint. DeepSeek’s rise raises serious questions: Can China truly compete without advanced US technology? Will US export restrictions backfire? So, where does this leave Europe in the developing AI war?

DeepSeek’s challenge to US AI dominance

For years, the United States has led AI development, with companies such as OpenAI, Google DeepMind, and Anthropic pushing limits. These companies have relied on:

• Massive computational power
• Large financial resources
• Advanced semiconductor chips (mostly manufactured by NVIDIA).

However, DeepSeek promises to be able to achieve the same outcomes with far less computational power and energy consumption. This calls into question a long-held AI belief: that larger models, more GPUs, and higher budgets equal better performance. Does this indicate DeepSeek has cracked the AI code? Not exactly. Although it has enhanced current AI systems, it has not yet produced whole new models that can challenge US giants. However, it shows that hardware advantage is not the primary determinant of AI advancement, a fact that could change global AI leadership.

Geopolitical implications: AI as a strategic weapon

DeepSeek’s rise is not just about tech innovation—it’s about geopolitics and national security.

1. China vs. the US: The AI Arms Race

AI is not just a commercial tool; it also has significant military applications, ranging from cybersecurity to autonomous weapons. While US export controls aim to slow China’s AI progress, they may prove ineffective if DeepSeek and similar companies find ways to innovate around chip restrictions. As a result, the US is likely to impose even tighter sanctions on AI development, further cutting off any remaining technological exchanges between the two nations.

1. Europe: Stuck in the middle?

Europe has lagged in AI due to the massive investment required, but if DeepSeek proves that AI can be built efficiently, it raises the question of whether the EU could develop its own AI ecosystem. However, the EU AI Act mandates transparency and accountability—standards that DeepSeek may struggle to meet due to China’s strict content regulations. Additionally, concerns over data sovereignty are growing; Italy has already banned DeepSeek over privacy issues, and other EU nations may soon follow.

Censorship and transparency: DeepSeek's main weakness

One big red flag? Censorship and transparency.

Unlike OpenAI and Google, which face scrutiny yet operate with relative transparency, DeepSeek is subject to China's rigorous AI laws. All AI outputs must align with Chinese government policies—which means:

• No criticism of the Chinese government
• No politically sensitive content
• Potential surveillance risks

Will Western governments allow an AI model that operates under such constraints? The EU AI Act does not directly regulate censorship, but its requirement for human rights and freedom of expression could pose serious obstacles for DeepSeek’s expansion into Europe.

The future of AI: A fragmented world?

As the AI race heats up, we may be heading toward a world of AI silos:

• The US AI ecosystem (OpenAI, Google, Anthropic, NVIDIA)
• The Chinese AI ecosystem (DeepSeek, Baidu, Tencent)
• The EU AI ecosystem? (Still developing, but facing challenges)

For businesses and governments, this means harder choices:

1. Who do you trust for AI services?
2. Will AI innovation slow down due to geopolitical restrictions?
3. How will regulatory differences affect global AI adoption?

DeepSeek’s emergence is a wake-up call. AI is no longer just about who has the best tech—it’s about who controls it, who regulates it, and who can use it.

One thing is certain: AI’s future will be as much about politics as it is about innovation.