America’s response to rising scientific competition from China—symbolized by DeepSeek’s R1 matching OpenAI’s o1—has been very different. The DeepSeek Moment has been met not with resolve and competition but with anxiety and retreat.
Trump has proposed slashing the NIH budget by nearly 40% and NSF by 56%. The universities have been attacked, creating chaos for scientific funding. International collaboration is being strangled by red tape. Foreign scientists are leaving or staying away. Tariffs have hit highs not seen since the Great Depression and the US has moved away from the international order.
Some of this is new and some of it is an acceleration of already existing trends. In Launching the Innovation Renaissance, for example, I said that by the Federal budget numbers, America is a warfare-welfare state not an innovation state. However, to be fair, there are some bright spots. Market‑driven research might partially offset public cuts. Big‑tech R&D now exceeds $200 billion annually—more than the entire federal government spending on R&D. Not everything we did post-Sputnik was wise nor is everything we are doing today foolish.
Nevertheless, the contrast is stark: Sputnik spurred investment and ambition. America doubled down. DeepSeek has sparked defensiveness and retreat. We appear to be folding.
Question of the hour. Why has America responded so differently to similar challenges? Can understanding that pivot help to reverse it? Show your work.