Categories: Business

The uncombed nerd who shook up AI tech giants

Liang Wenfeng, once dismissed as a math “nerd with a terrible haircut,” has burst onto the global stage after his AI firm, DeepSeek, unveiled technology so advanced it caused Silicon Valley’s stock values to plummet. A hedge-fund whiz turned tech mogul, Wenfeng grew up devouring calculus in his hometown of Zhanjiang, later studying at Zhejiang University before funding DeepSeek with his financial successes.

Threatening US tech dominance

Side view of engineer working nightshift and using technology in front of petroleum industrial factory and using laptop and smart phone.

DeepSeek’s chatbot, launched to coincide with President Donald Trump’s inauguration, shot to the top of the App Store’s free downloads—and rattled major American firms like OpenAI, Meta, and Google. Investors fear the company’s ability to produce cutting-edge AI at a fraction of the cost signals a shift in the arms race for artificial intelligence supremacy.

Ties to Chinese government

Despite DeepSeek’s claims of independence, skeptics question how Wenfeng sidestepped US export bans on advanced microchips. Critics point to China’s Military-Civil Fusion, suggesting that Beijing could be assisting DeepSeek behind the scenes. Meanwhile, Wenfeng’s invitation to a high-level meeting with Premier Li Qiang cements his status as a national hero in China’s push for tech leadership.

Worries over data security

Western officials warn that Chinese intelligence agencies may leverage the massive data trove DeepSeek gathers. The app collects user IP addresses, keystrokes, and more—potentially feeding “Communist AI” that aligns with Beijing’s geopolitical interests. The looming prospect of mandatory data sharing under Chinese law is prompting alarm among American lawmakers.

DeepSeek vs. Big Tech

DeepSeek’s open-source ethos challenges the secrecy of traditional tech giants. Boasting minimal hardware costs and widespread developer collaboration, Wenfeng’s model has cast doubt on established players’ sky-high R&D budgets. Marc Andreessen called DeepSeek’s breakthrough “AI’s Sputnik moment,” signifying a pivot toward cheaper, more accessible AI solutions.

Why it matters

As DeepSeek’s popularity soars, it underscores a broader US-China rivalry in strategic technologies. American and European regulators now face urgent questions about national security, data privacy, and free-market competition. In this new AI landscape, Wenfeng’s once-ridiculed dream is reshaping how the world views Chinese innovation.

Herbert Bauernebel

Herbert Bauernebel has been reporting from New York since 1999 and currently works for Bild.de, OE24 TV, and US Live. He also runs the news portal AmerikaReport.de. Bauernebel has covered nearly all major US events of the past quarter-century, including 9/11, Hurricane Katrina, Barack Obama’s election, Donald Trump’s surprise victory, the pandemic, last year’s election showdown, as well as natural disasters such as hurricanes and oil spills. He has also reported firsthand on international events, including the Asian tsunami, the Haiti earthquake, and the Fukushima disaster. He lives in Brooklyn with his family and holds degrees in communication and political science from the University of Vienna. Bauernebel is the author of a book about his experiences on 9/11, And the Air Was Full of Ash: 9/11 – The Day That Changed My Life.

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Herbert Bauernebel

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