Lessons in Asymmetric Innovation: DeepSeek

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In January 2025, a coalition of U.S. tech leaders-OpenAI, SoftBank, Oracle, and MGX-announced “The Stargate Project,” a $500 billion initiative to fortify American AI infrastructure through advanced data centers by 2029. The project seeks to construct large-scale data centers to advance AI capabilities and maintain U.S. competitiveness in the field. Not a month later, China’s DeepSeek came to the fore by exploiting asymmetric opportunities in artificial intelligence (AI) innovation. Its approach mirrors the unconventional strategies employed by U.S. adversaries in asymmetric warfare, leveraging constrained resources to undermine conventionally superior forces.

Unlike well-resourced U.S. tech giants, DeepSeek’s leadership prioritized adaptability and efficiency, recruiting individuals who could overcome resource constraints to outmaneuver larger, better-supplied rivals. This strategic approach mirrors the operational philosophy of U.S. Special Operations Forces (SOF), which rely on adaptability and unconventional tactics to defeat adversaries with greater numbers and superior resources. DeepSeek’s success and SOF-like philosophy offers valuable insights for U.S. defense planners and the defense industry, particularly as they navigate competition with geopolitical rivals like China and Russia.

DeepSeek and the SOF Model of Innovation

DeepSeek’s rise reflects the principles that have long defined SOF operations: leveraging ingenuity and adaptability to create disproportionate advantages over more conventionally powerful opponents. SOF have historically operated with fewer resources than conventional military units, yet they have excelled in combat by employing superior strategy, leveraging local knowledge, and rapidly iterating new tactics. In much the same way, DeepSeek has innovated by identifying the means to achieve the same result as its rivals at greatly reduced cost and with older technology, outmaneuvering U.S. tech giants that believed they would win by throwing money at the one path they had identified. This model of innovation, doing more with less, is precisely what has made SOF so effective on the battlefield, and it holds critical lessons for the broader defense sector. 

SOF and AI: Redefining the Battlefield

SOF have long relied on agility and innovation to outmaneuver more conventionally powerful adversaries. Their adoption of AI follows the same pattern, proving that cutting-edge technology does not have to be exclusive to well-funded, bureaucratic military programs. Unlike conventional military units that often require years of research, procurement cycles, and large-scale integration efforts, SOF has pioneered AI applications that enhance battlefield effectiveness without massive infrastructure or investment.

One example is the “Hyper-Enabled Operator” concept, which integrates AI into wearable and portable systems to provide real-time data analysis, threat detection, and decision support. Rather than requiring expansive command centers, SOF operators can access battlefield intelligence through lightweight AI-powered devices, giving them an edge in complex, high-stakes environments. These systems can rapidly analyze terrain, track enemy movements, and provide instant language translation capabilities that previously required significant manpower and logistical coordination.

SOF’s approach demonstrates that AI can be integrated at the tactical level in ways that are lightweight, cost-effective, and immediately useful in combat. This mindset, which prioritizes practical applications over bureaucratic complexity, offers a model that the broader U.S. defense industry must embrace to remain competitive against adversaries who may not have America’s financial resources and will depend on innovative thinking to get ahead.

Budgeting Tip: Learn from GWOT

During the Global War on Terror (GWOT), U.S. forces discovered that their technologically inferior enemies were capable of significant innovation. Insurgent groups created IEDs using off-the-shelf electronics and leveraged social media for propaganda and coordination. While the U.S. military had access to cutting-edge weaponry and surveillance, the enemy’s ability to adapt quickly often neutralized America’s technological superiority. The lesson here is clear: successful innovation in warfare, and in AI, is not a question of money or the latest technology. Believing there is only one path to success leads to failure, even if you can afford to pave it with gold.

During the GWOT, the U.S. poured trillions of dollars into military operations, yet often found itself countered by low-cost, adaptive tactics employed by insurgents. If the U.S. applies the same flawed approach to AI development, it risks being outmaneuvered by rivals such as China and Russia, who may adopt more agile, adaptable methodologies akin to those used by DeepSeek and SOF.

To maintain an edge in Great Power Competition (GPC), the U.S. must drop mentalities that assume American preeminence, whether military, economic, or technological. The SOF mentality better reflects and better serves the United States’ place in the post-GWOT age. This means fostering a culture of rapid innovation, embracing decentralized problem-solving, and prioritizing flexible AI applications tailored to real-world combat scenarios. 

Just as SOF has consistently proven that smaller, smarter forces can overcome larger, more heavily equipped adversaries, the U.S. defense industry must learn to innovate efficiently rather than merely investing heavily. As a peacetime military downsizes, the defense industry would be best-served by hiring SOF Veterans who bring this culture and experience to the board room. By adopting the asymmetric thinking exemplified by DeepSeek and SOF, these companies can position themselves for success in the rapidly evolving landscape of AI-driven warfare. Failure to do so will prove much more expensive than $500 billion.