Prime Highlights:
DeepSeek offers a highly affordable alternative to OpenAI’s ChatGPT, which is not officially available in mainland China, making it an attractive option for local businesses.
DeepSeek’s open-source models enable companies to customize and deploy the technology locally, lowering barriers to AI adoption.
Key Background:
Chinese companies are rapidly adopting DeepSeek’s cutting-edge artificial intelligence (AI) model, marking a significant shift in the country’s tech landscape. In the past week, a wide array of businesses, including major automakers like BYD, financial institutions, state-owned telecommunications providers, and the smartphone brand Honor, have rushed to integrate DeepSeek into their operations. This surge in adoption is unparalleled, according to Wei Sun, principal analyst of artificial intelligence at Counterpoint Research, who emphasized the scale and speed of integration across multiple industries.
A major factor behind this growing interest is the open-source nature of DeepSeek’s models, which are highly cost-effective compared to competitors like OpenAI’s ChatGPT. While ChatGPT is unavailable in mainland China due to U.S. restrictions, DeepSeek offers an attractive alternative with a much lower cost structure, allowing businesses to deploy the technology locally. The timing of DeepSeek’s release in January, coinciding with the Lunar New Year holiday, also played a role in boosting awareness of AI across less developed regions in China.
DeepSeek’s open-source platform enables companies to customize and deploy its models, significantly reducing the barriers to entry for AI adoption. Businesses such as Movitech, a software company, have reported increased sales following the integration of DeepSeek’s technology, which has helped optimize decision-making processes for their clients. Additionally, DeepSeek’s affordability has pressured other AI providers to lower their prices, contributing to wider AI adoption across industries such as finance, healthcare, and telecommunications.
The Chinese government has also provided support for AI adoption, with the national supercomputing network offering subsidized access to DeepSeek, further accelerating its integration across businesses. Although DeepSeek is currently one of the top contenders, Chinese companies are exploring a range of AI models, indicating a dynamic and competitive market. In the long term, AI is expected to play a crucial role in driving revenue growth, with experts predicting that by 2029, 60% of Chinese businesses will have integrated AI into their core services.
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