### Summary In the wake of ChatGPT's global popularity, a new AI model from China, DeepSeek, has shifted the conversation from whether ChatGPT poses a threat to China to whether the US can stem Chinese innovation. Initially, China's attempts to respond with chatbots from Baidu, Tencent, and ByteDance fell short, leading to mockery from users. However, the launch of DeepSeek, which claims its model is significantly cheaper than those developed by US firms, has surprised many in Silicon Valley. Despite US restrictions on advanced chip exports that are crucial for AI development, DeepSeek's founder, Liang Wenfeng, managed to build a sizeable stockpile of Nvidia A100 chips prior to the ban, allowing them to train their AI model efficiently. Critics like Elon Musk have raised questions about how many advanced chips were actually used, but experts note that such restrictions led to innovation within Chinese firms. The Chinese government has heavily invested in AI talent through scholarships and research initiatives. DeepSeek has a small team of under 140, primarily composed of graduates from top Chinese universities, emphasizing research and long-term technological goals over quick profits.

This 'home-grown' talent is driving the country's ambition for technological self-reliance, reflecting a new wave of entrepreneurial spirit. Liang is now celebrated as an "AI hero" on Chinese social media, alongside other prominent figures, as DeepSeek captures public interest. Though there are lingering doubts about the company's future amid strict US restrictions, it has sparked excitement within the tech community in China. The release of DeepSeek's model has brought hope to China's tech industry, particularly as the nation faces potential challenges from tariffs and international scrutiny. Users are eager to test DeepSeek, although early feedback has been mixed, with some experiencing inaccuracies in its outputs.