World Affairs
- 891
- 269
- Origin
- Axis Group
Date of Event:
Jan 26, 2025
America’s policy of restricting Chinese access to Nvidia’s most advanced AI chips has unintentionally helped a Chinese AI developer leapfrog U.S. rivals who have full access to the company’s latest chips.
This proves a basic reason why startups are often more successful than large companies: Scarcity spawns innovation.
A case in point is the Chinese AI Model DeepSeek R1 — a complex problem-solving model competing with OpenAI’s o1 — which “zoomed to the global top 10 in performance”— yet was built far more rapidly, with fewer, less powerful AI chips, at a much lower cost, according to the Wall Street Journal.
This proves a basic reason why startups are often more successful than large companies: Scarcity spawns innovation.
A case in point is the Chinese AI Model DeepSeek R1 — a complex problem-solving model competing with OpenAI’s o1 — which “zoomed to the global top 10 in performance”— yet was built far more rapidly, with fewer, less powerful AI chips, at a much lower cost, according to the Wall Street Journal.
