Business
What is DeepSeek? And How Is It Upending A.I.?

Tech stocks tumbled. Giant companies like Meta and Nvidia faced a barrage of questions about their future. Tech executives took to social media to proclaim their fears.
And it was all because of a little-known Chinese artificial intelligence start-up called DeepSeek.
DeepSeek caused waves all over the world on Monday as one of its accomplishments — that it had created a very powerful A.I. model with far less money than many A.I. experts thought possible — raised a host of questions, including whether U.S. companies were even competitive in A.I. anymore.
DeepSeek is “AI’s Sputnik moment,” Marc Andreessen, a tech venture capitalist, posted on social media on Sunday.
How could a company that few people had heard of have such an effect?
What is DeepSeek?
DeepSeek is a start-up founded and owned by the Chinese stock trading firm High-Flyer. Its goal is to build A.I. technologies along the lines of OpenAI’s ChatGPT chatbot or Google’s Gemini. By 2021, DeepSeek had acquired thousands of computer chips from the U.S. chipmaker Nvidia, which are a fundamental part of any effort to create powerful A.I. systems.
In China, the start-up is known for grabbing young and talented A.I. researchers from top universities, promising high salaries and an opportunity to work on cutting-edge research projects. Both High-Flyer and DeepSeek are run by Liang Wenfeng, a Chinese entrepreneur.
Over the past few years, DeepSeek has released several large language models, which is the kind of technology that underpins chatbots like ChatGPT and Gemini. On Jan. 10, it released its first free chatbot app, which was based on a new model called DeepSeek-V3.
Why did the stock market react to it now?
When DeepSeek introduced its DeepSeek-V3 model the day after Christmas, it matched the abilities of the best chatbots from U.S. companies like OpenAI and Google. That alone would have been impressive.
But the team behind the new system also revealed a bigger step forward. In a research paper explaining how it built the technology, DeepSeek said it used only a fraction of the computer chips that leading A.I. companies relied on to train their systems.
The world’s top companies typically train their chatbots with supercomputers that use as many as 16,000 chips or more. DeepSeek’s engineers said they needed only about 2,000 Nvidia chips.
Why is that important?
Since late 2022, when OpenAI set off the A.I. boom, the prevailing notion had been that the most powerful A.I. systems could not be built without investing billions of dollars in specialized A.I. chips. That would mean that only the biggest tech companies — such as Microsoft, Google and Meta, all of which are based in the United States — could afford to build the leading technologies.
(The New York Times has sued OpenAI and its partner, Microsoft, claiming copyright infringement of news content related to A.I. systems. The two tech companies have denied the suit’s claims.)
But DeepSeek’s engineers said they needed only about $6 million in raw computing power to train their new system. That was roughly 10 times less than what Meta spent building its latest A.I. technology.
How did DeepSeek make its tech with fewer A.I. chips?
Top A.I. engineers in the United States say that DeepSeek’s research paper laid out clever and impressive ways of building A.I. technology with fewer chips.
In short, the startup’s engineers demonstrated a more efficient way of analyzing data using the chips. Leading A.I. systems learn their skills by pinpointing patterns in huge amounts of data, including text, images and sounds. DeepSeek described a way of spreading this data analysis across several specialized A.I. models — what researchers call a “mixture of experts” method — while minimizing the time lost by moving data from place to place.
Others have used similar methods before, but moving information between the models tended to reduce efficiency. DeepSeek did this in a way that allowed it to use less computing power.
“It has become very clear that other companies, not just someone like OpenAI, can build these kinds of systems,” said Tim Dettmers, a researcher at the Allen Institute for Artificial Intelligence in Seattle and a professor of computer science at Carnegie Mellon University who specializes in building efficient A.I. systems. “DeepSeek used methods that anyone can duplicate.”
DeepSeek’s research paper raised questions about whether big U.S. companies could maintain a significant lead in A.I. Many experts believe that A.I. technology will become a commodity, with many companies selling much the same product.
Is DeepSeek’s tech as good as systems from OpenAI and Google?
DeepSeek-V3 can answer questions, solve logic problems and write its own computer programs as effectively as anything already on the market, according to standard benchmark tests.
Just before DeepSeek released its technology, OpenAI had unveiled a new system, called OpenAI o3, which seemed more powerful than DeepSeek-V3. But OpenAI has not released this system to the wider public.
OpenAI o3 was designed to “reason” through problems involving math, science and computer programming. Many experts pointed out that DeepSeek had not built a reasoning model along these lines, which is seen as the future of A.I.
Then on Jan. 20, DeepSeek released its own reasoning model called DeepSeek R1, and it, too, impressed the experts. That eventually sent U.S. investors and others into a panic late last week and over the weekend as they realized the importance of DeepSeek’s new technology.
U.S. tech giants are building data centers with specialized A.I. chips. Does this still matter, given what DeepSeek has done?
Yes, it still matters.
Large numbers of A.I. chips can still help companies in many ways. With more chips, they can run more experiments as they explore new ways of building A.I. In other words, more chips can still give companies a technical and competitive advantage.
More chips will also be needed to operate the new breed of “reasoning” A.I. models, experts said. These require more computing power when people and businesses use them.
Hasn’t the United States limited the number of Nvidia chips sold to China?
Yes. To maintain the U.S. lead in the global A.I. race, the Biden administration had put in place rules limiting the number of powerful chips that could be sold to China and other rivals.
But the impressive performance of the DeepSeek model raised questions about the unintended consequences of the American government’s trade restrictions. The controls have forced researchers in China to get creative with a wide range of tools that are freely available on the internet.
Some experts continue to argue in favor of U.S. trade restrictions, saying that they were only recently put in place and that they will have a greater effect on China’s abilities to create A.I. as the years pass.
Does DeepSeek’s tech mean that China is now ahead of the United States in A.I.?
No. The world has not yet seen OpenAI’s o3 model, and its performance on standard benchmark tests was more impressive than anything else on the market. But experts are concerned that China is jumping ahead on open-source A.I. systems.
What exactly is open-source A.I.?
Like many other companies, DeepSeek has “open sourced” its latest A.I. system, which means that it has shared the underlying computer code with other businesses and researchers. This allows others to build and distribute their own products using the same technologies.
This is part of the reason DeepSeek and others in China have been able to build competitive A.I. systems so quickly and inexpensively.
In the A.I. world, open source first gathered steam in 2023 when Meta freely shared an A.I. system called Llama. At the time, many assumed that the open-source ecosystem would flourish only if companies like Meta — giant firms with huge data centers filled with specialized chips — continued to open source their technologies.
But DeepSeek and others have shown that this ecosystem can thrive in ways that extend beyond the American tech giants.
Why is that important?
Many experts have argued that the big U.S. companies should not open source their technologies because they could be used to spread disinformation or cause other serious harm. Some U.S. lawmakers have explored the possibility of preventing or throttling the practice.
But other experts have argued that if regulators stifle the progress of open-source technology in the United States, China will gain a significant edge. If the best open-source technologies come from China, these experts argue, U.S. researchers and companies will build their systems atop those technologies.
In the long run, that could put China at the heart of A.I. research and development, which could further accelerate its effort to build a wide range of A.I. technologies, including autonomous weapons and other military systems.

Business
Kaiser healthcare worker strike ends after five days. Bargaining resumes this week

A five-day strike that affected hundreds of Kaiser Permanente clinics and hospitals in California and Hawaii came to an end after the union representing workers said it had “new momentum” to head back to the bargaining table, but no apparent agreement has been reached.
“This strike may be over — but the fight for patient safety is not,” the United Nurses Assns. of California/Union of Healthcare Professionals, known as UNAC/UHCP said in a statement. “Caregivers are returning to work united, energized, and ready to keep up the pressure for a fair contract that puts patients first.”
Kaiser and union officials are set to resume bargaining on Wednesday and Thursday.
The union requested a wage increase of 25% over four years, an ask that union officials have said was needed to compensate for the smaller 2% increases workers received in the first year as part of their 2021 contract negotiations.
The union has also pushed for the additional hiring of more staff, and proposed an internal registry of on-call union nurses, so that the company doesn’t rely on contracted traveling nurses.
Kaiser officials have argued that employees on average earn 16% more than peers in the industry, and that the wage increases proposed raised their “already above-market wages over the 4-year contract.”
Company officials said the company offered a 21.5% wage increase over four years before the strike was called, as well as additional improvements to medical plans and retiree benefits.
Kaiser officials said workers returned to work Sunday at 7 a.m.
During the strike, facilities were staffed with doctors, managers and nearly 6,000 contracted nurses and clinicians to minimize disruption to care, officials said.
On Sunday, the UNAC/UHCP announced the end of the strike, stating that the labor action was “sending a resounding message that patient care and safe staffing must come first.”
The union pointed to new staffing standards released by the Joint Commission, a nonprofit that accredits healthcare organizations, that recognized adequate staffing as a component of providing needed care.
The new standard moves staffing levels away from an employer’s choice that could be affected by budget constraints, to a patient safety standard, the union said in a statement.
“The Joint Commission has finally said what nurses have known all along: Unsafe staffing is unsafe care,” said Charmaine S. Morales, president of the UNAC/UHCP in the statement. “It’s now a national patient safety mandate — and UNAC/UHCP will make sure it’s enforced.”
Officials at Kaiser said it was welcoming back the 30,000 employees who went on strike, but in a statement said the main point of contention at the bargaining table has been wages, not staffing.
“While the Alliance has publicly emphasized staffing and other concerns, wages are the reason for the strike and the primary issue in negotiations,” said Terry Kanakri, spokesperson for Kaiser, in a statement.
During bargaining, “the focus will be on economic issues,” Kanakri said in the statement. “At a time when the cost of healthcare continues to go up steeply, and millions of Americans are having to make the difficult choice to go without coverage, it’s critical that we keep quality, accessible healthcare coverage affordable.”
Meanwhile union officials have blasted the company for holding $66 billion in reserves and expanding projects in other states.
Business
NLRB sues California over new law empowering state agency to enforce federal labor rights

The National Labor Relations Board has sued California to block a law that empowers a state agency to oversee some private-sector labor disputes and union elections.
Gov. Gavin Newsom signed Assembly Bill 288 into law last month in response to the Trump administration’s hampering of federal regulators. It gives the state’s Public Employment Relations Board the ability to step in and oversee union elections, charges of workplace retaliation and other issues in the event the federal labor board is unable, or declines, to decide cases.
The lawsuit, filed Wednesday in U.S. District Court for the Eastern District of California, argues the law usurps the NLRB’s authority “by attempting to regulate areas explicitly reserved for federal oversight.”
The lawsuit echos the NLRB’s challenge to a recent New York law that similarly seeks to expand the powers of its state labor board.
NLRB attorneys contend in the lawsuits that the laws create parallel regulatory systems that conflict with federal labor law.
The NLRB is tasked with safeguarding the right of private employees to unionize or organize in other ways to improve their working conditions.
Lawmakers in New York and California said they passed their bills to fill a gap, because the NLRB has been functionally paralyzed since January, when President Trump fired one of its Democratic board members. The unprecedented firing of that member, Gwynne Wilcox, left the board without the three-member quorum it needs to rule on cases.
Wilcox has challenged her firing in court, arguing that appointed board members can only be fired for “malfeasance or neglect of duty.” But her removal was upheld by the Supreme Court for now, until her case can make its way through lower courts.
Lorena Gonzalez, president of the California Federation of Labor Unions, last month called AB 288 “the most significant labor law reform in nearly a century.”
The California Public Employment Relations Board typically has authority only over public sector employees. But when the new law goes into effect on Jan. 1, workers in the private sector who are unable to get a timely response at the federal level can also petition the state board to take up their cases and enforce their rights.
The state’s labor board can choose to take on a case when the NLRB “has expressly or impliedly ceded jurisdiction,” according to language in the law. That includes when charges filed with the agency or an election certification have languished with a regional director for more than six months — or when the federal board doesn’t have a quorum of members or is otherwise hampered.
The NLRB’s paralysis has put hundreds of cases in limbo, with the agency currently lacking the ability to compel employers to bargain with their workers’ unions, or to stop unfair treatment on the job.
However, the agency’s acting general counsel — Trump appointee William Cowen — has said that only a fraction of cases require decisions from the typically five-member board and that the agency’s work has been largely unaffected, with regional offices continuing to process union elections and unfair labor practice charges.
Business
Trump administration terminates Citibank consent order prohibiting Armenian American discrimination

The Consumer Financial Protection Bureau has terminated a consent order that prohibited Citibank from discriminating against its Armenian American customers.
The agency, led by President Trump’s Office of Management and Budget Director Russ Vought, ended the consent order on Thursday, three years earlier than when it was set to expire.
The termination order signed by Vought said the bank had already paid more than $24.5 million in penalties and redress payments required by the agreement, and that it had taken steps to prevent future violations of the law. The order also waived any allegations of non-compliance.
Citibank entered into the consent order in November 2023 after it was accused of applying more stringent criteria or even blocking the accounts of credit card applicants in and around Glendale with surnames ending in “ian” and “yan.”
The bank suspected that those applicants seeking new cards or higher limits would be more likely to commit fraud, with some employees referring to them as “Armenian bad guys” or the “Southern California Armenian Mafia,” according to the consent order.
The agency also also found that the bank took “corrective action” against employees who failed to identify and deny the applications. Employees were ordered not to tell customers the real reasons for their rejections or to discuss it in writing or on recorded lines.
The agency’s findings focused on Citigroup’s retail-services division, which houses the bank’s co-brand credit-card partnerships with such companies as Home Depot and Best Buy.
The bank did not admit or deny the CFPB’s findings and did not respond immediately to a request for comment Friday.
California Democratic Sen. Adam Schiff blasted the decision to end the consent agreement.
“Once again, this administration is putting big corporations ahead of the people,’” he said in a statement. “This choice, to take the side of the bank against the wronged in the face of the most plainly discriminatory conduct, will cast a long shadow over the community.”
The CFPB did not respond to an email inquiry for comment.
Glendale is home to about 15% of the Armenian American population in the U.S, with Los Angeles County having a population of about 250,000 of the ethnic group.
The settlement prompted litigation against the bank by hundreds of customers, some of whom said they not only had their credit card applications rejected but even had accounts closed after years with Citibank.
“Although this does not affect our pursuit of Citibank for its discrimination against Armenian Americans in our community, this is still a slap in the face to the Armenian Americans in Los Angeles County, many of whom support our president,” said Glendale attorney Tamar Armanak, whose firm filed a number of the ongoing lawsuits.
-
Alaska6 days ago
More than 1,400 seeking shelter as hundreds wait to be evacuated after catastrophic Western Alaska storm, officials say
-
North Carolina1 week ago
Guide to NC State Fair 2025: Tickets, transportation, parking, new rides and special event days
-
World1 week ago
Albanian judge killed in courtroom shooting amid growing anger over justice system reforms
-
News6 days ago
Trump Halts Billions in Grants for Democratic Districts During Shutdown
-
World5 days ago
What are NATO’s national caveats and why do they hinder fast response?
-
News1 week ago
Video: Diane Keaton, Oscar-Winning Actress, Dies at 79
-
News5 days ago
A Supreme Court ruling on voting rights could boost Republicans’ redistricting efforts
-
World6 days ago
European Commission delays decision on asylum seeker quotas