Deepseek's Revelation Was Only A Matter Of Time

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Computer science is prime for such breakthroughs because high-power computing power is widely commercially available, and well-trained engineers are now active worldwide. Universities far and wide now provide outstanding engineering education. Meanwhile, open-source software has enabled wide access to sophisticated programming.

Equally important is the fact that leading technology companies from the US, including market leaders like Google, now develop significant parts of their software in locations around the globe using well-trained local engineers.

This creates domestic talent pools from which creative new companies can emerge to compete internationally. Once highly trained engineers are available, new software companies are likely to be formed, funded by governments and private capital.

Innovations will thus come from unexpected places- because brilliant people will do remarkable things given the right resources. And the resources for sophisticated software development are now available in many parts of the world.

The long-term effect of DeepSeek on the AI market is still being debated. However, it is safe to expect that the much lower cost of training useful AI systems will result in an expanded market as solutions become more affordable.

This has been the historical pattern in industrial technology, creating as usual winners and losers. But there is an important message in the success of DeepSeek for government policy on controlling technology transfer.