Government policies, generous funding and a pipeline of AI graduates have helped Chinese firms create advanced LLMs.

By Stephen Nellis, Krystal Hu, Jeffrey Dastin, Anna Tong and Katie Paul (Reuters) - Top White House advisers this week expressed alarm that China's DeepSeek may have benefited from a method that allegedly piggybacks off the advances of U.

The sudden rise of Chinese AI app DeepSeek has leaders in Washington and Silicon Valley grappling with how to keep the U.S. ahead in the crucial technology.

The start-up had become a key player in the “Chinese Large-Model Technology Avengers Team” that would counter US AI dominance, said another. China’s delight, however, spelled pain for several giant US technology companies as investors questioned whether DeepSeek’s breakthrough undermined the case for their colossal spending on AI infrastructure.

By Kenrick Cai, Anna Tong, Jeffrey Dastin SAN FRANCISCO -Developers at leading U.S. AI firms are praising the DeepSeek AI models that have leapt into prominence while also trying to poke holes in the notion that their multi-billion dollar technology has been bested by a Chinese newcomer's low-cost alternative.

KEY TAKEAWAYS OpenAI said Wednesday that it is probing whether Chinese artificial intelligence startup DeepSeek improperly used its data to launch the low-cost model that spooked markets Monday.The comment by OpenAI follows a Bloomberg report that both OpenAI and its biggest backer Microsoft are investigating DeepSeek's model.

As Chinese AI company DeepSeek gains traction in the tech world amid ongoing US-China trade tensions, OpenAI suspects that DeepSeek may have utilized ChatGPT data to develop its own cost-effective AI models.