As a result of its success, DeepSeek has gained recognition as a serious AI provider, prompting local cloud service providers and chipmakers to adopt its models.
This integration has been described by Bernstein analysts as a 'watershed moment', emphasizing a reduced reliance on US hardware.
Chinese companies, including Moore Threads and Hygon Information Technology, are increasingly supporting DeepSeek's artificial intelligence models, signaling a pivotal moment for the industry.
On February 5, 2025, Huawei announced its collaboration with SiliconFlow to integrate DeepSeek's AI models into its Ascend cloud service, marking a significant moment in China's AI industry.
DeepSeek recently launched a free AI assistant that quickly surpassed ChatGPT in downloads on the Apple App Store, contributing to a global selloff in tech stocks.
The company gained attention in December 2024 for a research paper indicating that training its V3 model required less than $6 million in computing power, a stark contrast to the billions spent by major firms like Meta and Microsoft.
Analysts have praised DeepSeek for its innovative software that lowers the cost of training and operation, despite ongoing debates over its actual GPU costs.
DeepSeek's success has elevated the company and its founder, Liang Wenfeng, to celebrity status in China, reflecting national pride in technological advancements.
Major Chinese tech firms like Alibaba, Baidu, and Tencent have made DeepSeek's models available through their cloud services, further embedding the technology in China's digital infrastructure.
Despite its popularity, DeepSeek's AI app faces scrutiny in countries like Italy and the Netherlands over privacy concerns, leading to investigations.
Microsoft and Amazon have also started offering DeepSeek's models, but privacy concerns have led to investigations in various countries.
The South China Morning Post estimated that DeepSeek's server capital expenditure could reach $1.6 billion, with significant operating costs for its computing clusters.
