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The Wall Street Journal

Is Chinese AI All It鈥檚 Cracked up to Be?

Beijing is pushing a tech challenge to the US, but Washington can counter it with smart policies.

An illustration photo shows the DeepSeek logo displayed on a smartphone in Shanghai, China, on March 27, 2025. (CFOTO/Future Publishing via Getty Images)
Caption
An illustration photo shows the DeepSeek logo displayed on a smartphone in Shanghai, China, on March 27, 2025. (CFOTO/Future Publishing via Getty Images)

Is DeepSeek an avatar of revived innovation in China or a Beijing-coordinated deepfake? The surge on Chinese stock exchanges at the artificial-intelligence company鈥檚 market entry pushed the idea that China could pose a serious challenge to U.S. tech. But early evidence suggests that challenge has a shoddy foundation, which Washington could undermine with effective policy.

China鈥檚 AI advances rely heavily on American tech, data and expertise. Both DeepSeek and Ant Group, the other Chinese firm making a stir, present their new AI products as open-sourced, sophisticated competitors to U.S. models. But DeepSeek allegedly relied on illicitly acquired data along with technical expertise from and other U.S. tech leaders.