The landscape of technology and innovation in China is undergoing a seismic shift, catalyzed by the introduction of the DeepSeek AI modelMajor corporations across various sectors, from automotive manufacturers to telecommunications providers, are riding the wave of enthusiasm surrounding DeepSeek, with many perceiving it as a golden opportunity too lucrative to overlook.

Notably, news of companies deploying the DeepSeek model has resulted in a remarkable surge in stock prices for several publicly traded firms on the A-share marketOne striking example is Capital Online (300846.SZ), whose stock soared nearly 17% within a single day on February 10, accumulating an impressive increase of almost 50% over just four trading daysAnother player in the market, Megvii Technology (002881.SZ), witnessed its stock hit the ceiling, locking in trading gains consistently for four consecutive days following Its market debut.

On February 9, Capital Online officially announced its implementation of the DeepSeek-R1 model to the Shenzhen Stock Exchange, while Megvii mentioned in its regulatory filings that it is also in the early stages of deploying related modelsBoth companies have cautioned investors that although they hope to benefit from DeepSeek's potential cost efficiency, the immediate prospects for their business operations are likely to remain unchanged.

DeepSeek's appeal extends beyond smaller firms; major tech giants such as Tencent and Huawei are announcing their plans to integrate DeepSeek into their product offeringsChinese semiconductor firms, including Moore Threads and Haiguang Information, also declared their successful adaptation of the DeepSeek model for their productsSuch widespread engagement from both established and nascent companies cements DeepSeek's role as a central player in the evolution of technological applications in the region.

The Chinese Ministry of Industry and Information Technology has voiced support for the integration of DeepSeek by prominent telecommunication companies like China Mobile, China Unicom, and China Telecom, all of whom are now working towards leveraging the "inclusive application of the latest AI technologies" in collaboration with DeepSeek's open-source model.

Industry insiders are quick to editorialize that DeepSeek is more than a mere model; it has evolved into a new ecosystem akin to Android—a platform poised to revolutionize not just AI technologies but the broader tech landscape as well

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IDC analyst Cui Kai articulated this phenomenon, pointing out that cloud vendors can rejuvenate their business strategies by capitalizing on the resources made available by DeepSeek.

Nonetheless, amidst the excitement surrounding DeepSeek, some industry stakeholders advocate for a measured approachJia Yangqing, the founder of Lepton AI, has expressed a degree of skepticism about hastily adopting DeepSeek, despite acknowledging the model's prominence. "There is a proliferation of companies rushing to offer reasoning services based on it," he noted, suggesting the presence of numerous opportunistic players in the market.

Jia also highlighted that at least 44 domestic platforms are now integrating the DeepSeek-R1 modelHe raised a pertinent question regarding the strategy of smaller firms—whether they should emulate larger corporations' aggressive spending without a sustainable foundation or visionHe urged for 'calmness and resolve' in navigating this trend.

Echoing Jia's sentiments, Xia Lixue, CEO and co-founder of Wuwen Xinqiong, emphasized the importance of strategic tenacity in a competitive market landscapeAs DeepSeek garners widespread attention, its success has implications that resonate throughout the entire AI industry, fostering a broader discourse on the significance of maintaining steadfast strategies amid fleeting trends.

The fervent demand for DeepSeek within enterprises has sparked immense anticipation among investors, who are optimistic that this AI platform will disrupt the industry, positively influencing various sectors from chip manufacturing to software design and data center operationsThis has the potential to galvanize a resurgence in the capital markets, igniting a fresh wave of investment enthusiasm.

Analysts from international institutions have released unequivocal signals indicating that China is solidifying its stature in the realm of artificial intelligenceThe performance of the Hang Seng Tech Index substantiates this, with leading enterprises like Xiaomi and Alibaba seeing their stock values rise by approximately 30% since late January.

According to a report from Janus Henderson Investors, the recent rollout of DeepSeek underscores the effectiveness of China's industrial policies in propelling numerous sectors towards achieving global excellence

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