Chinese businesses are clamoring to ride the DeepSeek wave

The rapid deployment of DeepSeek’s AI model in China has attracted significant attention as major Chinese companies integrate this technology into their products and services. This development marks a significant shift in China’s AI landscape, with both state-owned enterprises and private companies moving quickly to adopt DeepSeek’s technology.

Major adoption momentum: China’s leading companies are rapidly incorporating DeepSeek’s AI model across various sectors, from automotive to telecommunications.

• Great Wall Motor, China’s first listed automaker, has integrated DeepSeek into its “Coffee Intelligence” connected vehicle system
• China’s three largest telecom providers – China Mobile, China Unicom, and China Telecom – are working to implement DeepSeek’s open source model
• Tech giants Tencent and Huawei have also announced integration of DeepSeek’s model into their offerings

Market impact and investor response: The introduction of DeepSeek’s platform has triggered significant market movements and speculation in China’s tech sector.

• Investors have rushed to buy shares in AI-related companies, including chipmakers, software designers, and data center operators
• The platform’s potential to reduce costs in the AI industry has led to broader speculation about positive effects on China’s tech sector
• Some companies have seen dramatic stock price increases, with Capitalonline Data Service jumping 49% and MeiG Smart Technology rising 33% in just three days

Cautionary signals: Despite the market enthusiasm, some companies are tempering expectations about DeepSeek’s immediate business impact.

• Capitalonline Data Service, while confirming DeepSeek-R1 model deployment, warned that business effects remain uncertain
• MeiG Smart Technology disclosed that its DeepSeek-related development work is still in early stages with no new business generated
• These cautionary statements suggest a gap between market excitement and actual business implementation

Understanding the implications: The widespread adoption of DeepSeek’s technology could reshape China’s AI competitive landscape while raising questions about sustainable growth and realistic expectations.

The intense market response to DeepSeek’s technology demonstrates both the promise and potential overexuberance in China’s AI sector. While major companies are making concrete steps toward integration, the tempered statements from some market participants suggest a need for realistic assessment of near-term business impacts.