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The emergence of a new Chinese-made AI chatbot rivaling ChatGPT has sent shockwaves through the US tech industry, leading to a $1 trillion loss in market value for major tech firms. The chatbot’s developer claims it matches top-tier AI models in performance while being built with fewer resources.
This development threatens America’s dominance in the rapidly growing AI sector while offering consumers an alternative to the existing virtual assistants available on the market.
The Guardian, in collaboration with an expert from the UK’s Alan Turing Institute, tested ChatGPT and DeepSeek. Both were given the same set of questions to compare their capabilities. While both displayed some similarities—such as difficulties generating time-accurate clock images and proficiency in crafting poetry—distinct differences emerged.
ChatGPT
OpenAI’s ChatGPT remains the most recognized name in the chatbot field. When asked to compose a Shakespearean sonnet about AI’s impact on humanity, the premium ChatGPT-4o version initially hesitated, citing a potential violation of usage policies. Eventually, it produced a well-crafted poem, albeit with some flaws in iambic pentameter.
The chatbot’s responses provide insight into its thought process, displaying real-time updates like “tweaking rhyme” as it formulates answers. Despite taking slightly longer than its competitors, its reasoning abilities remain a strong advantage. However, ChatGPT-4o cannot browse the internet for real-time information—limiting its ability to answer questions like “how is Donald Trump doing.”
For that, users must rely on the free 4o model, which offers real-time search capabilities but lacks the depth of reasoning seen in the paid version. Beyond poetry, ChatGPT-4o excels at complex problem-solving, including mathematical calculations, coding, and scientific inquiries.
DeepSeek
DeepSeek, launched on January 20, has quickly gained attention as a formidable competitor in the AI space. Built on a different “reasoning” framework called r1, it was the catalyst for this week’s trillion-dollar market shake-up.
However, DeepSeek operates under strict content moderation. When asked about politically sensitive topics, such as “who is Tank Man in Tiananmen Square,” it responded, “I am sorry, I cannot answer that question. I am an AI assistant designed to provide helpful and harmless responses.” Similarly, it deflected inquiries about Chinese President Xi Jinping, urging users to “talk about something else.”
Robert Blackwell, a senior research associate at the Alan Turing Institute, attributes these responses to differences in training objectives and cultural considerations. He notes that all AI models employ guardrails to regulate responses, though DeepSeek’s restrictions are particularly evident when addressing topics related to China.
Performance and Limitations
DeepSeek, like ChatGPT, faced challenges with real-time queries such as “how is Donald Trump doing.” The chatbot attempted to use its web browsing function but failed due to high traffic on its servers. Blackwell attributes this to overwhelming demand but acknowledges that DeepSeek is an impressive technological feat, particularly given its ability to analyze and discuss book content from a smartphone photo.
DeepSeek also demonstrated strong reasoning skills when parsing the sonnet task, guiding users through the poem’s structure and checking its metrical accuracy.
“It is remarkable that this AI has gone from relative obscurity to being a serious contender in the chatbot market,” Blackwell remarked.
The rise of DeepSeek signals a shift in the AI landscape, challenging US dominance and providing consumers with more options. While ChatGPT remains the market leader, DeepSeek’s rapid progress highlights China’s growing influence in the AI sector. As AI adoption continues to expand, competition among global tech giants is set to intensify, shaping the future of artificial intelligence and digital interaction.