The AI startup developed a top system by relying on inexperienced engineers and a loophole in U.S. export controls.

The sudden rise of Chinese AI app DeepSeek has leaders in Washington and Silicon Valley grappling with how to keep the U.S. ahead in the crucial technology.

DeepSeek's chatbot's answer echoed China's official statements, saying the relationship between the world's two largest economies is one of the most important bilateral relationships globally. It said China is committed to developing ties with the U.S. based on mutual respect and win-win cooperation.

DeepSeek, a Chinese artificial-intelligence startup that’s just over a year old, has stirred awe and consternation in Silicon Valley after demonstrating AI models that offer comparable performance to the world’s best chatbots at seemingly a fraction of their development cost.

It was the latest thaw in relations between the two countries, whose troops were involved in deadly skirmishes high in the Himalayas in 2020.

China and India have agreed to resume direct commercial flights, in the latest sign of an easing of tensions between the world’s two most populous countries.