Chinese state-linked social media accounts have amplified narratives celebrating the recent launch of DeepSeek, a Chinese startup specializing in artificial intelligence, which has made significant waves just days before U.S. tech stocks took a sharp downturn.
According to the online analysis firm Graphika, the accounts involved ranged from Chinese diplomats to state media, all promoting the idea of DeepSeek as a challenger to U.S. dominance within the AI sector. This surge of online support occurred across platforms including Elon Musk's X (formerly Twitter) and Meta Platforms' Facebook and Instagram, along with Chinese services such as Toutiao and Weibo.
Jack Stubbs, Chief Intelligence Officer at Graphika, pointed out the remarkable agility with which China is able to mobilize various groups to seed narratives portraying Beijing as outpacing the U.S. on key fronts of technological competition, particularly AI. "This activity shows how China is able to quickly mobilize a range of actors..." he noted, highlighting the nationwide effort to support its technological advancements.
Graphika’s findings revealed notable patterns: there was a minor surge of discussions about DeepSeek’s innovations on X when it released its models on January 20. This was followed by significant discussions over the weekend, leading to DeepSeek's free AI assistant dethroning U.S. rival ChatGPT as the most downloaded app on Apple’s app store.
The impact was drastic; during this period, investors reacted by pulling out of U.S. tech stocks, causing Nvidia—whose value plummeted by $593 billion—to experience the largest one-day loss ever recorded on Wall Street. Nvidia, a significant player investing heavily in AI data centers, declined to comment on Graphika’s report.
DeepSeek has claimed to develop its AI model at considerably lower costs than its U.S. competitors, raising concerns among American firms about the potential for competitive pricing wars. Shares of Microsoft, heavily invested behind OpenAI, fell sharply as the company reported slower-than-expected cloud revenue growth, even as it committed to continued substantial financial investments in AI technology.
The rise of DeepSeek has been celebrated within China as indicative of the nation’s ability to push back against U.S. restrictions aimed at containing its tech industry. Meanwhile, allegations surfaced from the U.S. alleging DeepSeek improperly accessed technologies developed by OpenAI. Although these claims remain unverified, the U.S. Commerce Department is investigating whether DeepSeek may be using banned U.S. chips.
While the celebratory endorsements of DeepSeek's accomplishments echo the national narrative of technological superiority, U.S. responses signal heightened concerns over intellectual property and trade integrity. The bursting of U.S. stock bubbles tied to the tech sector adds weight to this broader conversation about the shifting balances of power within global tech.
On this front, increasingly aggressive propaganda efforts from China paired with actual technological advancements like those demonstrated by DeepSeek suggest we are witnessing not just competition over technology, but also influence through media narratives. It brings forth significant questions about the future of AI development and the geopolitical scales of tech dominance.