Home World News AI Revolution of 2025: Deepseek AI R1 and Open. Where is India now in technologically between China and the United States?

AI Revolution of 2025: Deepseek AI R1 and Open. Where is India now in technologically between China and the United States?

by Saurav Biswas
deepseek ai r1

The dot-com boom occurred in the 2000s, and the global markets were severely damaged by the 2008 financial crisis. Both, though, appear inconsequential in comparison to the 2025 tech stock crisis, which destroyed $1 trillion in a single day. An unexpected player—a small Chinese business and a group of engineers who released the DeepSeek AI R1 model—caused the market to collapse, causing Nvidia, the leader in AI chips in America, to lose $600 billion in a matter of hours. This ground-breaking AI technology completely upended the global tech industry by outperforming anything from Silicon Valley.

What is DeepSeek AI R1?

A little-known Chinese business created the ground-breaking AI model DeepSeek AI R1. In contrast to its Western rivals, which needed enormous data centers and billions of dollars in investment, DeepSeek AI R1 was taught for a mere $5.6 million. Even yet, it did better than OpenAI despite using a lot less processing power.

DeepSeek AI R1 uses outdated processors rather than expensive AI chips that are prohibited from being exported to the United States. Its cutting-edge features made it possible to use it even on gaming PCs by reducing memory usage and processing power by 75%. More significantly, it was open-source, which allowed developers worldwide to improve and expand it—something that even the US couldn’t deny.

Also Read: Deepseek: What is it? US tech companies should take note of Trump ‘wake-up call’ says

America vs. China: The AI Arms Race

The United States has long attempted to suppress China’s technological advancements, imposing strict semiconductor bans to cripple its AI progress. Yet, China’s DeepSeek AI R1 demonstrated that innovation is not solely dependent on cutting-edge chips. The AI model challenged the belief that Silicon Valley held the monopoly on AI superiority.

China’s rapid AI development aligns with its broader ambition to surpass the U.S. in science, technology, and global trade. Despite economic sanctions and restrictions, China has continued to invest heavily in R&D, surpassing the U.S. in various fields, from AI and quantum computing to space exploration.

India: A Spectator in the Tech War

India has been left far behind in the competition for supremacy in AI between the US and China. India lacks the vision and risk-taking skills, but it has the talent and financial means to invest in basic AI models. Despite launching AI projects, Indian tech behemoths TCS, Infosys, and Reliance have not significantly advanced the development of basic AI. The USA is now experiencing the AI awakening.

Despite promising industrial growth, government programs like "Make in India" fell short of China's assertive strategy. On the other hand, China's "Made in China 2025" strategy, which prioritized advanced technology, met 80% of its goals. At about 4%, India's manufacturing growth is stagnant and well below the 12–14% target.

The Global Technological Battleground

China’s advancements are not limited to AI. The nation is making notable progress in:

  • Renewable Energy: China dominates global solar panel production, with 80% market share and 20% lower costs than U.S. manufacturers.
  • Electric Vehicles (EVs): In 2024, China accounted for 60% of global EV sales, selling 11 million units, whereas India lags at just 2%.
  • Semiconductors: Despite U.S. bans, China has developed alternative semiconductor manufacturing techniques.
  • Quantum Computing: China’s Tianyan 504 is among the world’s most powerful quantum computers.
  • Space Exploration: China launched its own space station in 2021 and aims to send astronauts to the Moon by 2030.
  • Military Technology: China’s 6th-generation fighter jet was publicly revealed in 2024, while India is still waiting for its 5th-generation aircraft.

The Urgent Need for Change

India's priorities need to be reconsidered. Focus has been drawn away from important sectors like healthcare, education, and technological innovation due to the obsession with political diversion. India runs the risk of slipping further behind in the global tech race as a result of declining school enrollments and reductions in research funding.

India should concentrate on keeping its own talent rather than praising CEOs of Indian descent in US tech firms. While India continues to experience brain drain, nations like China, Taiwan, and Germany provide alluring incentives to entice skilled professionals to return.

Conclusion: The Path Forward

In the upcoming decades, the future of global leadership in AI and technology will be decided. India is still an observer in the high-stakes struggle for dominance between the United States and China. India runs the risk of falling behind not only in AI but in all of the major technological frontiers of the twenty-first century if it does not make immediate investments in AI research, semiconductor manufacturing, and cutting-edge innovation.

India requires entrepreneurs who are willing to take risks, have a long-term vision, and are dedicated to innovation. Otherwise, by 2047, India will still be arguing about the past rather than influencing the future, while China will have advanced 500 years.

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