When China¡¯s DeepSeek released a competitive new artificial intelligence model called R1 last January purportedly built for less than many rivals, some feared the achievement posed a threat to America¡¯s lead in artificial intelligence.

More than a year later, DeepSeek has unveiled preview versions of a long-awaited new flagship model called V4, which costs less than many alternatives to use but doesn¡¯t meaningfully narrow the U.S. lead in AI capabilities. You could almost hear sighs of relief emanating from Washington and Silicon Valley.

¡°It is not competitive with frontier U.S. models, and does not appear to close the gap with the United States in AI,¡± said Chris McGuire, a senior fellow for China and emerging technologies at the Council on Foreign Relations.