On Jan. 22, 2025, a Chinese startup called DeepSeek released an AI model that matched the capabilities of leading American large language models while using far less computing power. This triggered a nearly $600 billion market value drop in U.S. technology companies and sparked a debate about America’s AI strategy.
Focusing on the market reaction misses the deeper implications. The real story is about how America’s assumed technological dominance can evaporate faster than anyone expected. It’s about how the U.S. needs to rethink its approach to AI leadership.
DeepSeek demonstrated that the rules of AI development have changed. The company proved that China has mastered both the technical aspects of AI and the ability to implement and quickly deploy advanced capabilities.
China was not supposed to develop these advanced AI capabilities so fast. U.S. export controls on advanced AI chips, expanded in October 2023, were meant to maintain America’s technological edge. Instead, DeepSeek showed that determined competitors can achieve similar results with fewer resources.
A new model for American dominance
The race for AI supremacy has drawn comparisons to the space race of the 1950s. In 1957, the U.S.S.R.’s Sputnik was the first spacecraft to launch into orbit. This event shocked America into action, leading to the creation of NASA and a massive federal research effort.
Today the government lags years behind the private sector. Procurement cycles can stretch five to seven years, while commercial entities face complex regulatory frameworks. Even when technologies prove their value, institutional adoption bogs down in multiple approval layers and security reviews. We cannot wait for large federal programs to close the gap.
The innovation vs. implementation gap
America’s greatest advantage is in its entrepreneurs who take risks and innovate. Without waiting for the government, small and midsize companies — many of them in Utah — are finding new applications for AI, new ways to deploy it and new solutions to scalability challenges.
For example, Talbot West is pioneering an ensemble AI approach called Cognitive Hive AI (CHAI). Rather than betting everything on monolithic AI models, CHAI orchestrates multiple specialized AI components — from language models to predictive analytics engines and knowledge graphs — to outperform single-model approaches while maintaining explainability and flexibility. Organizations can build solutions that are more powerful, more efficient and more customizable than any standalone model.
Meanwhile, The Attic AI offers a no-code platform for the rapid creation of specialized AI models, and Foundry 44 is democratizing AI development through a blockchain-based marketplace that turns AI workflows into tradable digital assets. These are just a few of the many Utah companies innovating in the AI space.
The path forward
China’s system enables rapid deployment of new technologies through direct state coordination between research institutions, companies and government agencies. When a capability proves valuable, China can scale it across their economy in months rather than years.
We need to accelerate the deployment of American innovation while preserving democratic values and oversight. The answer involves neither mimicking China’s centralized control nor accepting the current pace of implementation. Rather, it requires rethinking how democratic societies can move with greater speed and purpose while maintaining essential safeguards. The private sector is leading this charge. Where the U.S. Department of Defense takes years to integrate technological advancements, private companies can do so in weeks or months.
Utah’s technology ecosystem offers a blueprint for AI transformation. Through 47G’s leadership, the state has created collaborative frameworks that accelerate innovation while preserving essential democratic values.
Utah’s vibrant ecosystem shows how democratic societies can match or exceed authoritarian ones through transparent, democratized AI. When American enterprises implement advanced AI capabilities, they contribute to broader innovation that advances our national interests. Each implementation drives progress in real-world applications and reinforces America’s competitive edge.
With 47G creating a framework for innovation and member companies like Talbot West driving AI advancements, Utah’s combination of a pioneering spirit, democratic values and a dynamic economy positions the state to show the world a better path forward.