From ChatGPT to DeepSeek, now Alibaba's Qwen: China reacts to AI stock frenzy

What happened China’s DeepSeek AI has sent shockwaves through the US tech sector, triggering a staggering $969 billion market shakedown. Unlike its American counterparts, which rely on power-hungry chips and vast energy resources, DeepSeek achieves competitive AI performance with cost-effective alternatives — disrupting an industry that thrives on expensive infrastructure. The market reaction was swift. Over 70% of the 69 stocks in the Technology Select Sector ETF (XLK) saw declines, with Nvidia (NVDA) alone shedding nearly $600 billion — more than the individual worth of 485 S&P 500 companies. The fallout also hit semiconductor, power, and infrastructure stocks tied to AI, wiping out over $1 trillion in value. However, investors quickly seized on the dip as a buying opportunity. Technology stocks regained some ground yesterday, with Nvidia rebounding 8.9% as bargain hunters stepped in. While the market is stabilizing, DeepSeek’s rise signals a fundamental shift in the AI race, proving that efficiency, not just cutting-edge hardware, could reshape the industry. The question now: Can US tech giants adapt before China’s AI momentum changes the game for good? The Jing Take While DeepSeek’s emergence sent shockwaves through US tech markets, it sparked a wave of pride and excitement across Chinese social media. The AI start-up quickly went viral on Weibo. Netizens have been celebrating DeepSeek’s ability to challenge US dominance in AI, with trending topics like “Busting the myth of American technology” and praise for the company’s founder, Liang Wenfeng. Users compared DeepSeek’s responses to ChatGPT’s, with many favoring the homegrown model. However, skepticism also emerged, with some questioning whether DeepSeek truly innovates beyond OpenAI’s breakthroughs and whether its data limitations under China’s Great Firewall impact reliability. The debate extended beyond tech, igniting conversations on China’s global position, government support for private enterprises, and national pride. One benefit of DeepSeek in comparison to ChatGPT is the fact that users can be shown the intelligent internal process of translating your query into an answer. For China, DeepSeek represents more than just technological prowess — it’s a symbol of resilience in the face of US restrictions on advanced chip exports. With President Xi Jinping prioritizing AI as a key national strategy, DeepSeek signals China’s growing ability to innovate despite geopolitical headwinds. However, challenges remain. Like other Chinese AI models, DeepSeek has some forms of censorship. It ultimately employs a multi-layered censorship system, filtering questions with blacklisted words, erasing responses mid-sentence if sensitive terms appear, and retrospectively reviewing answers for compliance. Despite these safeguards, Reddit users have reported that they have found workarounds, revealing that the AI often aligns with global online consensus on controversial topics, acknowledging queries such as the Tiananmen Square Protests or the advocating for more pro-LGBTQ policies. People are also finding ways to use emojis to divert restrictions. While its censorship limits international appeal, DeepSeek’s nuanced responses suggest a balancing act between state control and maintaining credibility in the global AI landscape. Users are reporting that it is the front-end doing the censoring, so if you use it locally it is more censored. There is also concern about the tech being so easily scalable that the race for AGI means it can proliferate quicker than we're equipped for. Whereas companies like Meta pride themselves on treading carefully with AI security, DeepSeek is reportedly not doing the same. Like China’s electric automotives, the cost is the real appeal, above all. But as China shifts from traditional manufacturing to high-tech industries, DeepSeek’s rise underscores its push to redefine global AI leadership — on its own terms. Competition is starting already from the mainland, with Alibaba unveiling its Qwen 2.5 AI model today, claiming it outperforms the acclaimed DeepSeek-V3. The launch, coinciding with Lunar New Year's first day (when China is largely out of office) emphasizes the growing pressure from DeepSeek's rapid ascent, challenging both global and domestic AI rivals. Additional reporting by Chloe Fang.

ChatGPT vs DeepSeek vs Alibaba’s Qwen: China reacts

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ChatGPT vs DeepSeek vs Alibaba’s Qwen: China reacts