DeepSeek Founder Liang Wenfeng Says China Put Profits Over Innovation — But Now Beijing Must Build A Tech Ecosystem To Rival Nvidia
DeepSeek founder Liang Wenfeng said China has prioritized short-term profits over innovation for decades—but now, the country must shift gears and build a strong AI ecosystem similar to what helped Nvidia Corporation (NASDAQ:NVDA) dominate the global semiconductor market.
What Happened: In an interview with Chinese tech news outlet 36Kr and translated by Nikkei Asia, Liang reflected on why DeepSeek's AI advancements have stunned Silicon Valley.
“Chinese companies had only followed them [the U.S.] up until that point, but this time we entered the field as an innovator,” Liang stated.
However, he argued that China's AI industry lacks the support structure needed to sustain innovation and that relying on Western breakthroughs is no longer an option.
“China should stop relying on others’ achievements and, in line with its economic growth, gradually switch its role to becoming a contributor to innovations,” Liang said.
He compared China's AI struggles to its semiconductor industry, which has lagged due to a lack of technology communities and industry backing.
“U.S. semiconductor giant Nvidia managed to establish its current position not simply through the efforts of a single company but through the efforts of Western technology communities and industries,” he explained.
“The Chinese AI industry needs to create such an ecosystem,” Liang added.
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Why It Matters: China’s DeepSeek has made waves with its low-cost AI assistant app. The company said it spent just $5.6 million on semiconductor chips. This is roughly one-tenth of what giants like OpenAI and Meta Platforms have invested in chips for their AI applications.
When the market saw that AI performance could remain strong with fewer, slower chips, it impacted suppliers of high-end chips.
On Jan. 27, Nvidia shares fell 17%. However, since then, chip stocks and AI-focused companies have seen a rebound.
During earnings calls, Mark Zuckerberg and Satya Nadella praised DeepSeek, while Sundar Pichai said that Google's Gemini remains superior. Palantir, however, warned clients against using DeepSeek.
Photo Courtesy: mundissima on Shutterstock.com
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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