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Washington’s main weapon in trying to delay Chinese AI advances has been restrictions on the export of advanced chips that are used in training AI.

DeepSeek is a challenge to the Hill too

Wall Street is freaking out ​​about DeepSeek — the Chinese AI system that appears to be beating several U.S.-based models on key metrics after being trained for a lot less money.

This market-trembling moment will raise questions in Washington about AI strategy and force policymakers to review long-held assumptions about the infrastructure needs of this technology.

It will also turbocharge the debate over the arms race like AI competition with China.

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