Hong Kong — The meteoric rise of DeepSeek has not only sent shockwaves through global AI markets and rattled major players like OpenAI, but it is also profoundly reshaping China’s own technology landscape. As one of the most influential open-source AI models to emerge in recent years, DeepSeek is rapidly being adopted by China’s largest technology firms, prompting a fundamental shift in the nation’s AI development strategy. Many of these companies, which had previously invested heavily in creating their own proprietary chatbots, are now racing to integrate DeepSeek’s advanced capabilities into their existing platforms and services.
The influence of DeepSeek reached a new milestone in early February when Huawei, China’s telecommunications giant, announced its decision to run DeepSeek on its own computing infrastructure powered by Ascend processors—domestically developed AI chips. This marked a significant departure from the prevailing reliance on Nvidia’s high-performance GPUs, which have long dominated the AI industry. Huawei’s decision underscores the growing viability of Chinese-made alternatives, a move that some analysts have labeled as a turning point in the global AI race.
Investment research firm Bernstein described this development as a major breakthrough, stating that the collaboration effectively counters US-imposed sanctions. By demonstrating that high-performing AI models can operate efficiently on locally developed Ascend chips, China has shown that it can circumvent restrictions designed to curb its access to cutting-edge AI technology. The shift is particularly noteworthy in light of US export controls introduced in late 2022 under the Biden administration, aimed at restricting China’s ability to develop next-generation AI systems and advanced weaponry.
Despite these sanctions, DeepSeek’s latest R1 AI model has proven that China’s AI sector continues to thrive. The model, reportedly trained at a fraction of the cost incurred by industry leaders such as ChatGPT, challenges the assumption that limiting China’s access to high-end semiconductor technology would stifle its AI advancements. DeepSeek’s rising prominence has drawn immediate attention from China’s leading AI chipmakers, including Moore Threads, Enflame (backed by Tencent), Baidu’s Kunlunxin, and Hygon Information Technology. These companies have pledged support for DeepSeek and have begun running the model on their respective computing platforms, accelerating its adoption across the industry.
