Chinese AI company DeepSeek has introduced a new open source artificial intelligence model, following Google’s release of its proprietary Gemini 3 system. The launch of DeepSeek’s low-cost model in January 2025 initially pressured Nvidia and cloud hyperscaler stocks but reflects the broader trend of Chinese companies promoting open source AI solutions. Firms such as Baidu, Alibaba, Zhipu AI, MiniMax, and Moonshot AI are also contributing to this competitive landscape.
Open source AI allows developers to reuse and extend large language models, reducing computational costs for training while maintaining high performance. DeepSeek’s model, available on Hugging Face and GitHub, reportedly excels in mathematical reasoning. Analysts say China’s AI API pricing, recently cut by 63%, could accelerate global adoption and application development.
Meanwhile, Google’s Gemini 3 aims to compete with OpenAI’s GPT-5 and Anthropic’s Claude, improving capabilities in coding, search, and image generation. Alphabet has integrated AI broadly across its services, boosting its stock 68% in 2025. The expansion of open source AI in China is prompting U.S. leaders and companies to accelerate domestic AI initiatives to remain globally competitive.
