01

In recent times, the launch of DeepSeek's large AI model has ushered in a new wave of artificial intelligence integration in ChinaFor many companies within the country, this represents a golden opportunity to enhance their technological capabilities in the realm of AIThe main drivers behind this surge are two significant advantages presented by DeepSeekFirstly, the model has been made open-source, allowing anyone to access and utilize it freelyThis democratization of technology enables a broader range of companies to harness AI without the steep costs typically associated with proprietary systemsSecondly, DeepSeek's overall performance has positioned it among the leading AI models globally, effectively granting users the benefits of cutting-edge technology.

These two factors create an exceptionally high value proposition for many businessesBut beyond technical advantages, there is also an underlying sentiment that remains unspoken yet palpable among users: the national origin of DeepSeek plays a crucial role in its adoptionBeing a fully domestically-developed AI model means enhanced security and reduced risk of foreign dependencyThis consideration is particularly important for large enterprises, which often invest substantial resources in AI developmentThe fear of becoming reliant on foreign (especially U.S.-made) technology can pose an existential threat if geopolitical tensions escalate.

For Chinese enterprises, the implications are clear: they cannot afford to find themselves deeply entangled in an American technology that may become unavailable due to sanctions or restrictionsAs such, DeepSeek serves as a timely solution, alleviating immediate concerns while encouraging widespread integration across various sectorsMany enterprises were quick to incorporate the model into their operations as soon as it became available.

Particularly notable are the technology firms, which have rapidly integrated DeepSeek's capabilities

Advertisements

In recent announcements, companies like Huawei Cloud, Tencent Cloud, Alibaba Cloud, Baidu Cloud, and JD Cloud all proclaimed their integration with the DeepSeek series models, thereby leveraging the advantages offered by this groundbreaking AI technology.

In the automotive sector, companies have also been hasty to adopt DeepSeek as they undertake transformations towards smart technologiesGeely Automotive has recently confirmed that it has merged its in-house developed Starry AI model with DeepSeek, while BYD's "Xuanji Architecture" has fully adopted it as wellThis trend has spread across the industry, with other automakers such as Zeekr and Lantu announcing similar integrations, indicating a strong preference for leveraging DeepSeek's offerings in the growing realm of intelligent driving.

As vehicle manufacturers continue to adopt DeepSeek, the convergence of advanced AI models and smart driving technologies promises to ignite new innovations within the automotive domainWhile it remains uncertain where precisely these innovations will emerge, the ongoing application and market promotion suggest there may be unforeseen surprises on the horizon.

Moreover, various publicly listed companies in China have also begun integrating DeepSeekFrom a cost perspective, they save significantly on expenditure by utilizing what is now the world’s most advanced AI modelThis open-source nature of DeepSeek has substantially motivated the widespread application of large models within China, bridging gaps that previously existed in tech adoption.

02

As more and more businesses and applications come online with DeepSeek, it is poised to become the cornerstone of large model applications across ChinaIf this trend solidifies, it could present a substantial threat to OpenAI and Western counterparts, leading to efforts by the U.S. to restrict access to DeepSeek for other nationsThis dynamic reflects a broader competition within the AI landscape, where controlling user bases translates directly into market ownership.

In the digital age, such competition mirrors the battles over operating systems in the computer era and mobile operating systems in the smartphone era

Advertisements

Now, the focus has shifted to competition among large modelsIndeed, the strategic decision to open-source DeepSeek is an astute move, effectively cornering OpenAI, which is still trying to establish itself with a business model that requires substantial capital investment to achieve scale.

OpenAI's trajectory involves raising capital to finance ambitious projects, typically culminating in an initial public offering, while eventually securing a dominant market positionHowever, amid this pursuit, the introduction of DeepSeek has disrupted conventional narratives, particularly given its ease of access and reduced operational costs.

When compared to OpenAI, DeepSeek excels in performance while dramatically reducing costs—down to as low as one percent of the price associated with its competitorsDue to this, DeepSeek faces minimal profit concerns, allowing it to enter the market without the pressures inherent to profit margins that burden its U.S. counterparts.

From a broader perspective, the competition in large models necessitates vast user bases and extensive datasets for continuous evolutionThis is akin to the development of operating systems during the mobile internet revolution, where having a foundational user base proves indispensableWhile immediate profitability may not be guaranteed, the accumulation of users can lead to diverse monetization strategies down the line.

With DeepSeek's introduction, the competitive landscape for large models has changed significantlyPreviously, many companies developed their models, but they now face tough choices, grappling with high sunk costs and the realization that they may be falling behind if they don’t adopt DeepSeekThe obvious solution for many firms is to pivot and integrate DeepSeek into their existing frameworks to avoid the pitfalls of misallocated resources.

Commonly, it is the latecomers that reap advantages by not getting entrenched in old methodologiesWith the directional potential of DeepSeek now apparent, companies can converge their resources and focus on innovation rather than contending with the costs of trial and error in a shifting tech landscape.

The most precarious position lies with companies that formerly followed U.S. leads, heavily investing in their technologies while lamenting their lack of progress in China

Advertisements

Advertisements

Advertisements