China's DeepSeek AI is raising US security concerns. Here's why.

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DeepSeek, China's latest AI chatbot, is causing concern among Silicon Valley investors. The company claims to have developed a Chinese chatbot at a significantly lower cost than US tech companies, raising questions about the implications for US companies investing heavily in AI development.

"I still think this is a fairly substantial engineering feat that experts have examined, and they found that these... very young Chinese engineers have done a great job at optimizing and working around constraints in a way that oftentimes we in the West don't, and we throw additional money at it and make these models very expensive," UC Berkeley Haas professional faculty member and Cambrian.ai CEO Olaf Groth tells Catalysts host Seana Smith.

While Groth believes DeepSeek's emergence will be "good for the market overall," he notes that from a geopolitical perspective, it could escalate national security concerns.

"Open source models that generate a lot of data in the United States, then spreading that much more effectively, that data going to Chinese servers will become an issue at even greater scale," he warns.

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This post was written by Angel Smith