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1、 2025 Observer Research Foundation.All rights reserved.No part of this publication may be reproduced,copied,archived,retained or transmitted through print,speech or electronic media without prior written approval from ORF.SPECIALREPORTno.260Global AIs DeepSeek Moment:Impact and Implications Rahul Ba

2、traM A Y 2 0 2 52The United States(US)is the current world leader in the race to develop the most powerful advances and applications of Artificial Intelligence(AI),but China has steadily caught up in recent years.The launch in January 2025 of DeepSeek-R1,a powerful AI(reasoning)model developed and o

3、ffered by a Chinese startup under open-source technology norms at a fraction of the current market costs,is being considered a milestone moment in this race.Given global AIs underwhelming socio-economic impact and commercial returns thus far,DeepSeek offers a paradigm shift in its accessibility and

4、influence.This report assesses the weight of this moment across pillars of the international system,and reviews how countries like India can respond to it.AbstractAttribution:Rahul Batra,“Global AIs DeepSeek Moment:Impact and Implications,”ORF Special Report No.260,May 2025,Observer Research Foundat

5、ion.3The theme of the Global Technology Summit held in April in New Delhi under the auspices of Indias Ministry of External Affairs1 was Sambhavnaa Hindi-language word meaning“possibility”.It sums up the progressive,albeit cautious,sentiment expressed by Foreign Minister S.Jaishankar at the event2th

6、at in a talent-and data-centric world,disruptions to the status quo can lead to opportunities for exponential leaps,given there is political will.With this in mind,it is worth recalling Chinese President Xi Jinpings claim sometime in March 2023 that the West,led by the United States(US),was suppress