Hong Kong — The emergence of DeepSeek as a formidable force in artificial intelligence has not only sent shockwaves through the global AI community but has also significantly altered the trajectory of China’s domestic technology sector. The rapid ascent of this open-source AI model has compelled some of China’s largest tech companies, many of which had previously focused on developing proprietary chatbots, to pivot their strategies and incorporate DeepSeek into their existing services.
A pivotal moment in this shift came in early February when Chinese telecommunications giant Huawei announced that DeepSeek would run on its Ascend AI processors, a domestically developed alternative to Nvidia’s high-performance chips. This development is widely seen as a breakthrough, demonstrating China’s capacity to sustain world-class AI innovation despite stringent U.S. export controls on advanced semiconductor technology. The investment research firm Bernstein highlighted the strategic significance of this move, stating that DeepSeek’s adoption of Ascend chips marks a crucial step in China’s ability to achieve AI independence from Western hardware suppliers.
The Biden administration’s restrictions, imposed since late 2022, sought to curb China’s access to cutting-edge chips necessary for AI development. However, DeepSeek’s latest AI model, R1, has defied these constraints by proving that high-performance AI can be trained at a fraction of the cost required by established players like OpenAI. This has led to widespread adoption among China’s leading AI chipmakers, including Moore Threads, Tencent-backed Enflame, Baidu’s Kunlunxin, and Hygon Information Technology, all of whom have integrated DeepSeek into their proprietary computing infrastructures. The momentum behind DeepSeek’s open-source model underscores the evolving AI landscape, where collaboration and shared advancements increasingly outweigh the once-dominant preference for closed ecosystems.
Beyond chipmakers, DeepSeek’s influence has rapidly extended to China’s cloud computing sector. Major technology conglomerates, including Alibaba, Tencent, Baidu, and Bytedance, have integrated DeepSeek’s capabilities into their cloud platforms, ensuring widespread availability of the AI model across China’s business ecosystem. This integration marks a strategic shift, as tech firms recognize the value of aligning with a powerful, cost-effective AI solution rather than solely relying on their own in-house developments.
China’s three largest telecom operators, along with leading consumer technology firms such as Lenovo and Geely, have also embraced DeepSeek, embedding its AI functionalities into their cloud services and products. This widespread adoption signifies DeepSeek’s growing dominance within China’s technology industry, solidifying its role as a foundational pillar for AI-driven applications. Industry analysts view this trend as a validation of open-source AI, demonstrating that an AI model with superior performance can quickly gain traction across multiple sectors.
Lian Jye Su, chief analyst at technology research firm Omdia, emphasized that DeepSeek’s rise reflects a broader industry shift toward the adoption of best-in-class AI models, regardless of their origin. “The fact that China’s tech giants are integrating DeepSeek into their platforms shows that AI development is no longer just about building proprietary models but about leveraging the best technology available to enhance their ecosystem,” he explained.
Despite having invested heavily in developing their own large language models following ChatGPT’s debut in 2022, China’s top firms now view DeepSeek as a complement rather than a competitor. The primary driver behind this trend is the need to attract users and businesses to their respective platforms. Unlike Western firms that rely on AI subscription models, Chinese companies see AI as a tool for expanding their ecosystems, increasing engagement, and driving adoption of their broader cloud and enterprise services.
DeepSeek’s impact extends beyond China’s borders, as its rise has captured global attention. The Hangzhou-based startup made headlines in January 2025 when it launched its latest AI model, which rapidly climbed the global app rankings, surpassing ChatGPT in daily active users. Within just 20 days of its release, DeepSeek’s AI Assistant had amassed over 22 million daily users, according to Chinese state media.
The meteoric rise of DeepSeek has also propelled its founder, Liang Wenfeng, into the national spotlight, positioning him as a symbol of China’s AI ambitions. However, this rapid ascent has not been without challenges. Several governments, including Taiwan and Australia, have recently imposed restrictions on the use of DeepSeek’s services within their public sectors, citing concerns over data security and privacy. In South Korea, multiple government ministries have issued similar bans, while Italy implemented a nationwide block on DeepSeek’s app due to unresolved privacy concerns. The increasing scrutiny from foreign regulators highlights the geopolitical complexities surrounding China’s growing influence in AI technology.
Despite these regulatory hurdles, DeepSeek’s rapid adoption and technological advancements signal a fundamental shift in the global AI landscape. As China’s technology sector continues to embrace open-source AI and develop alternatives to Western semiconductor dominance, the future of artificial intelligence appears to be entering a new era—one in which China is no longer a follower but a leader in AI innovation.
