Chinese Companies Race to Integrate DeepSeek Technology Across All Sectors

What do a mobile shooting game, a nuclear power plant, and a local Chinese government office have in common? Over the past few months, all of these entities have sought to incorporate DeepSeek’s R1 artificial intelligence model into their operations, hoping to capitalize on the technology’s growing prominence in China.

Since its rise to fame, DeepSeek has dominated headlines, not just for its capabilities, but for how companies across varying sectors are eager to showcase their engagement with this homegrown AI. While some firms are genuinely applying DeepSeek’s technology, others are leveraging the hype for publicity and to demonstrate national pride.

Recently, more than 20 Chinese automakers and at least one bus manufacturer announced plans to use DeepSeek’s chatbot in their vehicles. Additionally, around 30 medical and pharmaceutical companies confirmed its application in clinical diagnostics and research. Numerous banks, insurance companies, and brokerage firms are also exploring how DeepSeek can enhance their customer service training and investment strategies.

This rush to adopt DeepSeek resembles the frenzy that followed the launch of ChatGPT in late 2022 when many Western companies scrambled to signify their engagement with cutting-edge AI. Despite major Chinese players like Baidu and Alibaba releasing their AI models over the last couple of years, none attracted the same attention as DeepSeek, which claimed its model required significantly fewer computing resources than those from larger companies.

On a Chinese online stock exchange platform, nearly 5,000 inquiries related to DeepSeek have been logged, with many shareholders eager to know whether companies use the AI in their products. As a result, numerous businesses have publicly confirmed their AI implementations, often seeing a temporary spike in stock prices. However, when it becomes clear that some are only using DeepSeek for internal experiments, their stocks tend to drop back down.

Some announcements make logical sense, like cloud computing companies planning to offer DeepSeek-R1 to customers, or AI chip makers optimizing their products for DeepSeek’s models. Yet, many companies seem to be jumping on the bandwagon for mere clout, leading to skepticism about the real benefits of their technology integration.

For instance, the German accessory brand Cherry unveiled an "AI mouse" in China, which purportedly enables users to converse with DeepSeek via a button press. Meanwhile, Tencent’s mobile shooting game integrates DeepSeek to provide players with in-game fortune-telling sessions regarding their gaming prospects. Moreover, state-owned CGN Power simply stated that DeepSeek has been employed to aid its workers in understanding complex queries.

Local governments are also joining the trend. Shenzhen has implemented DeepSeek-powered applications across all government agencies, while Changsha utilizes the AI to manage urban data as part of its smart city initiative. Thousands of municipal officials are participating in educational sessions led by experts discussing DeepSeek’s potential.

DeepSeek’s success stems partly from timing; its open-source model emerged when Chinese companies were already eager to innovate with AI. It offers an affordable and user-friendly solution, fitting perfectly into the rapidly evolving tech landscape in China, particularly in the competitive field of electric vehicles (EVs). As the pressure mounted on manufacturers to continually enhance their offerings, DeepSeek’s technology enabled them to integrate advanced features without the sizable upfront R&D costs typically associated with such developments.

The allure of DeepSeek extends beyond its practical applications; it also serves as a strategic marketing tool, further enhancing its appeal to investors and consumers alike. This quick adoption also carries an underlying sentiment. The West’s alarm over DeepSeek has only fueled its popularity at home, where its success is seen as a reflection of China’s resilience against foreign technological restrictions. The company’s origin story emphasizes creating resource-efficient AI as a direct response to the US policies aimed at limiting China’s access to advanced semiconductors.

Statements from Chinese officials have commenced linking DeepSeek with national ingenuity, comparing its triumph to China’s historic achievements in nuclear technology and space exploration. The narrative that DeepSeek represents a challenge to U.S. hegemony in AI has contributed significantly to a feeling of national pride within China, illustrating how technological progress can bolster public morale, especially in light of geopolitical tensions.

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