The West Innovates, but China COPY/PASTES Better…

Author: FXPROFESSOR | Source: TradingView | Published: January 29, 2025

In a recent article, the author discusses how a Chinese AI company, DeepSeek, has created a competitor to ChatGPT using fewer resources and at a lower cost. This development has caused significant concern in the U.S. stock market, leading to a massive drop in the value of companies like NVIDIA, which is known for its expensive AI hardware. The article highlights a pattern where China not only copies Western innovations but also improves upon them, often leading to a competitive advantage.

The author points out that this isn’t the first time China has disrupted American technology. Examples include social media platforms and search engines where Chinese versions have outperformed their U.S. counterparts. The article suggests that as Chinese companies continue to innovate and offer their products for free, the U.S. may respond with regulatory actions, citing national security concerns. However, the underlying issue is that China is gaining ground in the tech innovation race.

Finally, the author warns that while free AI services may seem appealing, they come at a cost. By offering these services, Chinese companies are collecting valuable data that could shape the future of technology. The article concludes with a call to watch how U.S. companies and regulators react to this growing competition.

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