The meteoric rise of DeepSeek—the Chinese AI startup now challenging global giants—has stunned observers and put the spotlight on China’s AI sector. Since ChatGPT’s debut in 2022, the country’s tech ecosystem has been in relentless pursuit of homegrown alternatives, giving rise to a wave of startups and billion-dollar bets.

A security expert warns “Deepseek,” the no. 1 downloaded app on Apple and Google, could pose potential privacy concerns for American users.

Entrepreneur Marc Andreessen, known for co-writing Mosaic, one of the world’s first web browsers, wrote Sunday on X that “DeepSeek R1 is AI’s Sputnik moment,” likening it to the space race between the U.S. and the Soviet Union and the event that forced the U.S. to realize that its technological abilities were not unassailable.

W hen the upstart Chinese firm DeepSeek revealed its latest AI model in January, Silicon Valley was impressed. The engineers had used fewer chips, and less money, than most in the