DeepSeek Narrows China-US AI Gap to Three Months, Lee Kai-fu Says
Chinese startup DeepSeek has accelerated its AI advancements, narrowing the development gap with the US to just three months. According to 01.AI founder Lee Kai-fu, innovative approaches counteract U.S. sanctions and drive progress in key AI technologies.
Published on March 31, 2025
According to 01.AI CEO Lee Kai-fu, China has rapidly reduced its artificial intelligence gap with the United States to just three months in key areas. DeepSeek’s AI reasoning model, launched in January 2025, uses less advanced chips at lower costs, challenging the idea that U.S. semiconductor sanctions can hinder China’s progress. Lee highlighted that while China was previously six to nine months behind, it is now catching up in core technologies and even surpassing U.S. competitors in infrastructure software engineering.
Lee also noted that the challenges imposed by Washington’s sanctions have spurred Chinese companies to innovate, reshaping their business models and priorities. With a growing focus on practical AI applications via 01.AI’s Wanzhi platform, the industry is witnessing a shift toward commercial viability and sustainable revenue growth in 2025. This development aligns with broader market trends where Chinese AI startups are rethinking their strategies to consolidate leadership in the field as documented by sources like Reuters, Financial Times, TechNode, and The Edge Malaysia.