The US-China AI arms race has taken an unexpected turn

Check your subscription status, update your details and more. Powerful artificial intelligence models built by Chinese companies have gone from inducing widespread panic to being met with a shrug of the shoulders - what changed? When Chinese company DeepSeek released its open-source R1 model in January 2025, it made headlines around the world. The large language model (LLM) was reported to rival some of the most powerful AIs from US companies, but it was completely free for anyone to download. A trillion dollars was wiped off the value of US tech companies and US lawmakers immediately proposed banning it on government devices.