In a groundbreaking shift for China’s tech landscape, leading chipmakers and cloud service providers are racing to integrate DeepSeek’s artificial intelligence models, signaling a major leap forward for the country’s AI ambitions.
This surge in support is being hailed by analysts as a “watershed moment,” reshaping the global AI industry and reducing reliance on Western technology.
DeepSeek’s Meteoric Rise
DeepSeek, a rapidly growing AI startup from Hangzhou, has quickly captured global attention with its innovative large language models (LLMs), DeepSeek-R1 and V3.
Companies like Moore Threads and Hygon Information Technology, both key players in China’s AI chip sector, announced on Monday that their computing clusters and accelerators now fully support DeepSeek’s models.
Moore Threads even proclaimed in a WeChat post that DeepSeek’s success could “ignite” China’s AI industry, demonstrating the power of domestically produced graphic processing units (GPUs).
Meanwhile, tech giant Huawei is collaborating with AI infrastructure startup SiliconFlow to bring DeepSeek’s models to its Ascend cloud platform. Huawei claims the performance of these models matches that of those powered by top-tier international chips, proving that China’s homegrown technology is ready to compete on the global stage.
A Turning Point for Chinese AI
According to analysts at Bernstein, Huawei’s integration of DeepSeek into its Ascend chips represents a pivotal moment. “DeepSeek proves that competitive large language models can run effectively on China’s ‘good enough’ chips, reducing dependence on advanced U.S. hardware,” they noted. Other companies like Cambricon and Hygon are also expected to follow this trend, strengthening China’s self-reliance in the tech sector.
Major Chinese cloud service providers, including Alibaba Cloud, Baidu Cloud, and Tencent Cloud, have also jumped on board, offering DeepSeek’s models through their platforms. This rapid adoption underscores the model’s versatility and the growing confidence in China’s AI capabilities.
DeepSeek Challenges Global AI Dominance
DeepSeek’s influence isn’t just limited to China. The company made headlines globally after launching a free AI assistant last month, which quickly surpassed U.S. rival ChatGPT in downloads on Apple’s App Store. This unprecedented success triggered a global selloff in tech stocks, highlighting the disruptive potential of DeepSeek’s technology.
What’s even more impressive is DeepSeek’s efficiency. A research paper published in December revealed that training the DeepSeek-V3 model cost under $6 million using Nvidia’s H800 chips—a fraction of the billions spent by tech giants like Meta and Microsoft. This efficiency has made DeepSeek a symbol of innovation, turning its founder, Liang Wenfeng, into a pop culture icon in China.
Global Expansion and Regulatory Scrutiny
While Microsoft and Amazon have also begun offering DeepSeek’s models through their cloud services, the company faces hurdles in other regions. Countries like Italy and the Netherlands have blocked or are investigating DeepSeek’s AI applications over privacy concerns. Despite these challenges, DeepSeek’s momentum shows no signs of slowing, and its success continues to inspire confidence in China’s tech ecosystem.
DeepSeek’s rapid ascent is more than just a win for one company—it’s a signal that China is becoming a formidable force in the AI landscape. As more companies embrace this homegrown innovation, the global tech industry may be on the brink of a new era.
