In a recent evaluation by NewsGuard, Chinese AI startup DeepSeek found its chatbot trailing significantly behind its Western counterparts in terms of accuracy and reliability. This news comes as a setback for DeepSeek, which has been touting its AI as a cost-effective alternative to leading technologies developed by giants such as OpenAI and Google.

DeepSeek's Performance Woes
According to the audit conducted by NewsGuard, the DeepSeek chatbot managed a mere 17% accuracy rate in responding to news-related prompts, placing it tenth out of eleven AI technologies tested. This performance is starkly lower than the average fail rate of 62% observed among its Western rivals. The report further highlights that DeepSeek's chatbot repeated false claims 30% of the time and produced vague or unhelpful answers in 53% of the cases. Such results cast significant doubt on the efficacy of DeepSeek's technology, especially given its claims of parity or superiority over well-established technologies like Microsoft-backed OpenAI.
Market Impact and Consumer Reaction
Despite its underwhelming performance in the NewsGuard audit, DeepSeek's chatbot saw a surge in popularity, becoming the most downloaded app on Apple's App Store shortly after its release. This unexpected popularity raised alarms about the competitive edge of U.S. AI technologies, contributing to a market downturn that erased approximately $1 trillion from the valuation of U.S. tech stocks.Controversial Responses and Government Alignments
The audit also revealed that DeepSeek's chatbot tended to parrot the Chinese government's official stance in its responses, particularly noticeable when the chatbot was questioned about topics unrelated to China. For instance, when asked about the downing of Azerbaijan Airlines flight 8243, the chatbot reiterated Beijing's unrelated position, a response pattern that occurred in several instances during the audit.
Analyst Insights and Future Prospects
Despite the setbacks, some analysts remain optimistic about the potential cost benefits of DeepSeek's AI technology. Gil Luria from D.A. Davidson emphasized, "The importance of the DeepSeek breakthrough is not in answering Chinese news-related question accurately, it is in the fact that it can answer any question at 1/30th of the cost of comparable AI models." However, the propensity of the chatbot to repeat false informationâa vulnerability noted by NewsGuardâposes a significant challenge, particularly in an era where the accuracy of information is paramount. As the AI landscape continues to evolve, it will be crucial for DeepSeek to address these deficiencies if it hopes to compete effectively on the global stage. Meanwhile, consumers and regulators alike will be watching closely, aware that the integrity of news and information dissemination is critical in maintaining informed and democratic societies.AI accuracy, AI technology, Chinese AI, DeepSeek chatbot, misinformation, NewsGuard audit, technology stocks