DeepSeek, a Chinese-developed AI model, is making waves in the business world. Its affordability and claimed superiority over OpenAI's ChatGPT are driving rapid adoption across various sectors. Businesses are leveraging DeepSeek's capabilities to enhance productivity, explore new applications, and gain a competitive edge.
Chinese businesses are rapidly adopting DeepSeek, a new artificial intelligence model developed by Chinese engineers, to enhance productivity and explore its potential across various sectors. DeepSeek has garnered significant attention due to its cost-effectiveness and claimed superiority over OpenAI's ChatGPT in reasoning capabilities, despite US restrictions on China 's access to advanced semiconductors.
This widespread adoption is unprecedented, according to Wei Sun, principal analyst of artificial intelligence at Counterpoint Research. She highlights the speed of adoption, the scale of business integration, and the diverse range of industries embracing DeepSeek. Major cloud computing providers like Alibaba, Huawei, Tencent, and Baidu have all integrated DeepSeek's latest model into their platforms, making it accessible to a wide range of users.The enthusiasm for DeepSeek extends beyond individual businesses. It has also fueled optimism in Chinese stock markets, with UBS reporting that AI-related Chinese stocks have surged by 15% since the start of the year, outperforming the broader MSCI China Index. This surge is partly attributed to DeepSeek's open-source nature, allowing individuals and companies to download and customize the model. DeepSeek has also advertised significantly lower prices for applications compared to OpenAI's ChatGPT. This affordability has been instrumental in democratizing access to AI, particularly in less developed regions of China, according to Wenhao Zhang, CEO of the Beijing-based consumer marketing consultancy Doodod.Several businesses, including Movitech, a software company, have already witnessed tangible benefits from integrating DeepSeek. Movitech claims a 25% boost in sales since incorporating an earlier version of DeepSeek in the fourth quarter of last year. They plan to launch a new application powered by DeepSeek by the end of March, aiming to enhance clients' decision-making capabilities. The impact of DeepSeek is also evident in the increased sales of Apple Mac Minis in China. Data from consultancy WPIC shows a significant rise in online sales from November to January compared to the same period last year. DeepSeek's affordability is pressuring more expensive AI models to lower their prices, making the technology more accessible to a wider range of businesses. Chim Lee, senior Asia analyst at the Economist Intelligence Unit, believes that DeepSeek's open-source nature will accelerate the commoditization of AI, enabling even faster scaling. This rapid adoption of DeepSeek doesn't necessarily mean it will be the sole AI provider for Chinese companies. The AI landscape is constantly evolving, with new models emerging from both the US and China. Movitech, for instance, also utilizes Alibaba's Qwen AI model. Ultimately, businesses will gravitate towards the AI models that deliver the best cost-effectiveness and results, whether it's OpenAI, DeepSeek, or other emerging players
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