Hong Kong — The emergence of DeepSeek as a groundbreaking force in artificial intelligence has not only disrupted the global AI industry but has also significantly reshaped the technological landscape within China. Once a sector dominated by domestic giants working on proprietary models, China’s AI ecosystem is now witnessing a major shift, with top tech firms racing to integrate DeepSeek’s open-source technology into their own services, signaling a profound transformation in AI development strategies.
In February, Chinese telecommunications giant Huawei took a decisive step by announcing that DeepSeek would be run on its domestically produced Ascend AI processors. This strategic move represents a crucial milestone in China’s pursuit of self-sufficiency in AI, proving that high-performance models no longer require reliance on Nvidia’s cutting-edge chips. Analysts at the investment research firm Bernstein emphasized the geopolitical and technological implications of this development, noting that the partnership demonstrates China’s ability to deliver world-class AI capabilities using its own semiconductor infrastructure. The announcement comes amid ongoing U.S. sanctions aimed at restricting China’s access to advanced AI hardware, further intensifying the global AI competition.
Since 2022, the Biden administration has enforced multiple rounds of export restrictions on high-end semiconductors, seeking to curtail China’s ability to develop next-generation AI systems. However, the release of DeepSeek’s latest R1 AI model has defied expectations by demonstrating that world-class AI models can be trained at significantly lower costs than those of Western competitors like OpenAI’s ChatGPT. This development has prompted widespread interest among China’s leading AI chipmakers—including Moore Threads, Tencent-backed Enflame, Baidu’s Kunlunxin, and Hygon Information Technology—all of whom have begun running DeepSeek on their own computing architectures.
Beyond chip manufacturers, DeepSeek’s rapid ascent has reverberated across China’s cloud computing sector. Major technology conglomerates such as Alibaba, Tencent, Baidu, and Bytedance have moved swiftly to integrate DeepSeek’s services into their cloud platforms, ensuring that businesses and developers across the country can leverage its advanced AI capabilities. Additionally, China’s three leading telecom operators, along with consumer electronics giant Lenovo and automotive brand Geely, have embraced DeepSeek, embedding its AI functionalities into their cloud offerings and smart products.
Industry analysts see this shift as an acknowledgment of the power and efficiency of open-source AI. Lian Jye Su, chief analyst at technology research firm Omdia, underscored that the willingness of China’s largest tech firms to adopt DeepSeek reflects a changing paradigm in AI innovation. “Incorporating DeepSeek into their platforms is a strategic move that signals the growing acceptance of open-source models as a viable alternative to proprietary AI,” he explained.
China’s leading technology firms have spent the past two years developing their own large language models, particularly following the launch of ChatGPT in 2022. Yet, despite their investment in competing products, they have embraced DeepSeek as an essential component of their AI ecosystems. The reasoning behind this shift is clear: AI giants are no longer solely focused on creating exclusive models but are now prioritizing user adoption, engagement, and seamless integration into their broader service offerings.
DeepSeek’s impact extends far beyond China’s borders. The Hangzhou-based startup garnered global attention in January 2025 when it introduced its latest AI model, which quickly climbed the global download rankings, even surpassing ChatGPT in daily active users. Within just 20 days of its launch, DeepSeek’s AI Assistant app had attracted over 22 million daily users, according to Chinese state media reports.
The extraordinary rise of DeepSeek has elevated its founder, Liang Wenfeng, into the ranks of China’s most influential tech entrepreneurs, solidifying his reputation as a visionary figure in the AI sector. However, DeepSeek’s rapid expansion has also triggered regulatory scrutiny from various governments concerned about data security risks. Taiwan and Australia recently imposed restrictions on the use of DeepSeek’s services by government officials, citing national security concerns. In South Korea, several ministries have issued similar bans, while Italy took a more drastic step by enforcing a nationwide block on DeepSeek’s app due to unresolved privacy issues. These developments highlight the broader geopolitical tensions surrounding China’s rise as a major AI power.
Despite regulatory pushback, DeepSeek’s momentum remains strong, reinforcing its status as a transformative force in AI development. As China accelerates its efforts to achieve technological self-reliance, DeepSeek’s success marks a defining moment in the global AI race. With Chinese tech giants aligning their strategies around open-source AI and domestic chip innovation, the next era of artificial intelligence is taking shape—one in which China is not just participating but leading the charge.
