It's really unclear how much innovation DeepSeek has actually done, vs training on frontier model conversations.
For now, "training on frontier model conversations" are just allegations for which no evidence has been provided, while their research publications are certain evidence about their innovations.
The Americans should wake up to reality because their fantasies that are repeated continuously in all Internet media, that supposedly the Chinese copy the US technology so they will not be able to surpass it, were true many years ago, but there are already many years since this theory has become false and now there are many domains where USA would have to copy the Chinese technology if they do not want to remain behind.
Among other "sanctions", USA has forbidden the export to China of high-performance computing devices, but this has backfired as China has just demonstrated a supercomputer that is faster than any US supercomputer and which uses custom CPUs designed in China, apparently by Huawei, the company that was the main target of the US efforts to sabotage the Chinese competitors.
The US "sanctions" have hurt China for a few years, but they have convinced them that they must allocate resources to become able to make themselves everything that they previously bought from USA. The result is that now China has become stronger and USA weaker.
USA should have never sold technology to China a quarter of century ago and then the power relationship between the 2 countries would have been very different. But even 5 years ago it was already too late for any US "sanctions" to have lasting effects. Nowadays any hopes that US "sanctions" will keep China in the dark ages are pathetic.
With the kind of policies that are promoted by the US government, the chances that USA will keep its leading position in AI are minimal.
Wym it's unclear? They publish their research...
That's innovative
Then you have no understanding of what DeepSeek has actually done. They publish their work openly: go have a look! Their architectural improvements are fascinating.