DeepSeek's claims regarding its AI platform efficiency could blow a hole in the existing AI ecosystem. Getty Images
DeepSeek's claims regarding its AI platform efficiency could blow a hole in the existing AI ecosystem. Getty Images
DeepSeek's claims regarding its AI platform efficiency could blow a hole in the existing AI ecosystem. Getty Images
DeepSeek's claims regarding its AI platform efficiency could blow a hole in the existing AI ecosystem. Getty Images

Did US chip export policy provoke the rise of DeepSeek?


Cody Combs
  • English
  • Arabic

US tech firms are scrambling to figure out what to make of DeepSeek, the Chinese company and its AI platform that promises to do more and cost less.

If DeepSeek's technical claims are true, it could put a severe dent in what was once seen as an insatiable desire and technical necessity to acquire graphics processing units (GPUs). Chip designer Nvidia's stock price took a dive on Monday on the news of DeepSeek.

The need for GPUs was a critical part of the prosperity experienced by companies such as Nvidia. In turn, that prosperity trickled down to energy companies powering the GPUs. This economic ecosystem had many winners, but now appears vulnerable to DeepSeek's apparently leaner AI platform, which doesn't require as many resources.

DeepSeek's app took the top spot on Apple's App Store on Monday, days after the outgoing Biden administration announced new export rules on chips designed to protect the US lead on artificial intelligence. Those regulations were criticised by Nvidia, which said the rules would “undermine US leadership” in the AI and GPU space.

One export rule stated that 18 countries would be exempt from any red tape when it came to acquiring GPUs, leaving other nations looking in when trying to build out AI infrastructure for largely non-frontier AI use cases like healthcare and science research. Yet the claims made by DeepSeek that their AI platform requires less energy and therefore less powerful GPUs appear to have rendered the new US export controls moot.

The export controls had been in the works for several administrations, including both Obama terms and Mr Trump's first term, as the US-China rivalry hit new heights. Those rules, some have argued, prompted China to try to find workarounds such as those promoted by DeepSeek.

The US undersecretary of commerce for industry and security, Alan Estevez. Photo: Cody Combs
The US undersecretary of commerce for industry and security, Alan Estevez. Photo: Cody Combs

“DeepSeek’s apparent market success shows how fragile anyone’s lead in Generative AI is – after all, as an insider at Google pointed out in 2023, there is no ‘moat',” said Andrew Rogoyski, director of innovation and partnerships at the Surrey Institute for People-Centred AI, University of Surrey. In the case of DeepSeek, the moat that the US tried to build with export controls might not even be needed.

“It also begs the question of whether massive investments like the $500 billion Stargate project are going to be necessary if clever developments if GenAI can significantly reduce the need for huge compute resources. Is this another ‘Sputnik moment’, where the US realises it might not be as dominant in a technology as it thought?” Prof Rogoyski said.

He also pointed out that for several years, creating innovations in the AI space required access to incredible amounts of computing infrastructure, more colloquially known as "compute power". Those with access to those resources were the usual Big Tech suspects such as OpenAI, Alphabet and Anthropic.

Fears of upheaval in the AI gold rush have rocked Wall Street. AFP
Fears of upheaval in the AI gold rush have rocked Wall Street. AFP

Neil Chilson, head of AI policy at The Abundance Institute and former FTC chief technologist during President Trump's first term, said that the development of DeepSeek should cause politicians to rethink their approaches to technology policy.

“Regulators and legislators at the federal, state, and even local levels are developing frameworks that would cripple US open source development,” he said. “It would be deeply ironic if a failure to protect Americans’ right to compute leaves China as the international standard for open artificial intelligence models.”

Meanwhile, in the US Congress, Democratic Senate Minority Leader Charles Schumer echoed the sentiments by some that DeepSeek's rapid rise was akin to a "Sputnik moment", which should prompt the US to try to maintain a competitive advantage in AI. “This announcement is precisely why I made AI a top priority in the last Congress and will continue to do so,” he said on the Senate floor.

“Our competitors are going to use every single opportunity to overtake the US lead on the technologies of the future, particularly AI, and if Congress doesn't lead the way, we're going to fall behind,” he added, making the push for more bipartisan efforts on AI.

Over on the Republican side, Rep. John Moolenaar was more direct in his assessment of the DeepSeek platform.

"DeepSeek openly erases CCP's history of atrocities and oppression," he posted to X on behalf of the congressional select committee on Chinese policy.

"The US cannot allow CCP models such as DeepSeek to risk our national security and leverage our technology to advance their AI ambitions."

Meanwhile, experts, analysts and AI rivals are looking into DeepSeek's claims regarding its efficiency, which could blow a hole in the existing AI ecosystem.

“While their work is genuinely impressive, we should avoid both alarmist reactions and complacency,” said Dean Ball, a research fellow with the Mercatus Centre, a research institute at George Mason University. “It should be a reminder that competition will be fierce, progress will be rapid, and the AI ecosystem will feel turbulent for the foreseeable future,” he added.

UAE currency: the story behind the money in your pockets
If you go

The flights

There are direct flights from Dubai to Sofia with FlyDubai (www.flydubai.com) and Wizz Air (www.wizzair.com), from Dh1,164 and Dh822 return including taxes, respectively.

The trip

Plovdiv is 150km from Sofia, with an hourly bus service taking around 2 hours and costing $16 (Dh58). The Rhodopes can be reached from Sofia in between 2-4hours.

The trip was organised by Bulguides (www.bulguides.com), which organises guided trips throughout Bulgaria. Guiding, accommodation, food and transfers from Plovdiv to the mountains and back costs around 170 USD for a four-day, three-night trip.

 

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Pieces of Her

Stars: Toni Collette, Bella Heathcote, David Wenham, Omari Hardwick   

Director: Minkie Spiro

Rating:2/5

Nepotism is the name of the game

Salman Khan’s father, Salim Khan, is one of Bollywood’s most legendary screenwriters. Through his partnership with co-writer Javed Akhtar, Salim is credited with having paved the path for the Indian film industry’s blockbuster format in the 1970s. Something his son now rules the roost of. More importantly, the Salim-Javed duo also created the persona of the “angry young man” for Bollywood megastar Amitabh Bachchan in the 1970s, reflecting the angst of the average Indian. In choosing to be the ordinary man’s “hero” as opposed to a thespian in new Bollywood, Salman Khan remains tightly linked to his father’s oeuvre. Thanks dad. 

Key findings of Jenkins report
  • Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
  • Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
  • Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
  • Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
Desert Warrior

Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley

Director: Rupert Wyatt

Rating: 3/5

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MATCH INFO

Rugby World Cup (all times UAE)

Final: England v South Africa, Saturday, 1pm

Western Region Asia Cup Qualifier

Results

UAE beat Saudi Arabia by 12 runs

Kuwait beat Iran by eight wickets

Oman beat Maldives by 10 wickets

Bahrain beat Qatar by six wickets

Semi-finals

UAE v Qatar

Bahrain v Kuwait

 

Electric scooters: some rules to remember
  • Riders must be 14-years-old or over
  • Wear a protective helmet
  • Park the electric scooter in designated parking lots (if any)
  • Do not leave electric scooter in locations that obstruct traffic or pedestrians
  • Solo riders only, no passengers allowed
  • Do not drive outside designated lanes
Winners

Best Men's Player of the Year: Kylian Mbappe (PSG)

Maradona Award for Best Goal Scorer of the Year: Robert Lewandowski (Bayern Munich)

TikTok Fans’ Player of the Year: Robert Lewandowski

Top Goal Scorer of All Time: Cristiano Ronaldo (Manchester United)

Best Women's Player of the Year: Alexia Putellas (Barcelona)

Best Men's Club of the Year: Chelsea

Best Women's Club of the Year: Barcelona

Best Defender of the Year: Leonardo Bonucci (Juventus/Italy)

Best Goalkeeper of the Year: Gianluigi Donnarumma (PSG/Italy)

Best Coach of the Year: Roberto Mancini (Italy)

Best National Team of the Year: Italy 

Best Agent of the Year: Federico Pastorello

Best Sporting Director of the Year: Txiki Begiristain (Manchester City)

Player Career Award: Ronaldinho

Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

Company%20Profile
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The specs

Engine: 2.0-litre 4cyl turbo

Power: 261hp at 5,500rpm

Torque: 405Nm at 1,750-3,500rpm

Transmission: 9-speed auto

Fuel consumption: 6.9L/100km

On sale: Now

Price: From Dh117,059

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

Need to know

The flights: Flydubai flies from Dubai to Kilimanjaro airport via Dar es Salaam from Dh1,619 return including taxes. The trip takes 8 hours. 

The trek: Make sure that whatever tour company you select to climb Kilimanjaro, that it is a reputable one. The way to climb successfully would be with experienced guides and porters, from a company committed to quality, safety and an ethical approach to the mountain and its staff. Sonia Nazareth booked a VIP package through Safari Africa. The tour works out to $4,775 (Dh17,538) per person, based on a 4-person booking scheme, for 9 nights on the mountain (including one night before and after the trek at Arusha). The price includes all meals, a head guide, an assistant guide for every 2 trekkers, porters to carry the luggage, a cook and kitchen staff, a dining and mess tent, a sleeping tent set up for 2 persons, a chemical toilet and park entrance fees. The tiny ration of heated water provided for our bath in our makeshift private bathroom stall was the greatest luxury. A standard package, also based on a 4-person booking, works out to $3,050 (Dh11,202) per person.

When to go: You can climb Kili at any time of year, but the best months to ascend  are  January-February and September-October.  Also good are July and August, if you’re tolerant of the colder weather that winter brings.

Do not underestimate the importance of kit. Even if you’re travelling at a relatively pleasant time, be geared up for the cold and the rain.

Brief scores

Toss India, chose to bat

India 281-7 in 50 ov (Pandya 83, Dhoni 79; Coulter-Nile 3-44)

Australia 137-9 in 21 ov (Maxwell 39, Warner 25; Chahal 3-30)

India won by 26 runs on Duckworth-Lewis Method

if you go

The flights
The closest international airport to the TMB trail is Geneva (just over an hour’s drive from the French ski town of Chamonix where most people start and end the walk). Direct flights from the UAE to Geneva are available with Etihad and Emirates from about Dh2,790 including taxes.

The trek
The Tour du Mont Blanc takes about 10 to 14 days to complete if walked in its entirety, but by using the services of a tour operator such as Raw Travel, a shorter “highlights” version allows you to complete the best of the route in a week, from Dh6,750 per person. The trails are blocked by snow from about late October to early May. Most people walk in July and August, but be warned that trails are often uncomfortably busy at this time and it can be very hot. The prime months are June and September.

 

 

GAC GS8 Specs

Engine: 2.0-litre 4cyl turbo

Power: 248hp at 5,200rpm

Torque: 400Nm at 1,750-4,000rpm

Transmission: 8-speed auto

Fuel consumption: 9.1L/100km

On sale: Now

Price: From Dh149,900

Classification of skills

A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation. 

A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.

The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000. 

Info

What: 11th edition of the Mubadala World Tennis Championship

When: December 27-29, 2018

Confirmed: men: Novak Djokovic, Rafael Nadal, Kevin Anderson, Dominic Thiem, Hyeon Chung, Karen Khachanov; women: Venus Williams

Tickets: www.ticketmaster.ae, Virgin megastores or call 800 86 823

Squads

India (for first three ODIs) Kohli (capt), Rohit, Rahul, Pandey, Jadhav, Rahane, Dhoni, Pandya, Axar, Kuldeep, Chahal, Bumrah, Bhuvneshwar, Umesh, Shami.

Australia Smith (capt), Warner, Agar, Cartwright, Coulter-Nile, Cummins, Faulkner, Finch, Head, Maxwell, Richardson, Stoinis, Wade, Zampa.

Kibsons%20Cares
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The five pillars of Islam

1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

5. Zakat 

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Company Profile

Company name: Fine Diner

Started: March, 2020

Co-founders: Sami Elayan, Saed Elayan and Zaid Azzouka

Based: Dubai

Industry: Technology and food delivery

Initial investment: Dh75,000

Investor: Dtec Startupbootcamp

Future plan: Looking to raise $400,000

Total sales: Over 1,000 deliveries in three months

Tips for SMEs to cope
  • Adapt your business model. Make changes that are future-proof to the new normal
  • Make sure you have an online presence
  • Open communication with suppliers, especially if they are international. Look for local suppliers to avoid delivery delays
  • Open communication with customers to see how they are coping and be flexible about extending terms, etc
    Courtesy: Craig Moore, founder and CEO of Beehive, which provides term finance and working capital finance to SMEs. Only SMEs that have been trading for two years are eligible for funding from Beehive.

Company profile

Name: The Concept

Founders: Yadhushan Mahendran, Maria Sobh and Muhammad Rijal

Based: Abu Dhabi

Founded: 2017

Number of employees: 7

Sector: Aviation and space industry

Funding: $250,000

Future plans: Looking to raise $1 million investment to boost expansion and develop new products

Dubai Bling season three

Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed 

Rating: 1/5

MATCH INFO

Real Madrid 2 (Benzema 13', Kroos 28')
Barcelona 1 (Mingueza 60')

Red card: Casemiro (Real Madrid)

Global state-owned investor ranking by size

1.

United States

2.

China

3.

UAE

4.

Japan

5

Norway

6.

Canada

7.

Singapore

8.

Australia

9.

Saudi Arabia

10.

South Korea

The studios taking part (so far)
  1. Punch
  2. Vogue Fitness 
  3. Sweat
  4. Bodytree Studio
  5. The Hot House
  6. The Room
  7. Inspire Sports (Ladies Only)
  8. Cryo
Updated: May 02, 2025, 7:20 AM