Chinese businesses rush to try DeepSeek AI at 'unprecedented' scale
Published On Feb 12, 2025, 11:13 PM
Chinese businesses are rapidly adopting the DeepSeek AI model, with various sectors including automakers, telecommunications, and finance showing unprecedented integration levels. The model's open-source availability and lower cost compared to competitors like OpenAI are major driving factors. The growing interest is reflected in the 15% increase of AI-related Chinese stocks since the start of the year, as businesses look to enhance productivity with AI technology. This shift suggests a significant potential for AI to drive growth across multiple industries in China, particularly smaller companies and those that innovate with AI and hardware integration.
Stock Forecasts
BABA
Positive
The significant adoption of DeepSeek AI reflects a growing trend towards AI deployment across various sectors in China, which can bolster productivity and profitability. The cost advantage and open-source structure of DeepSeek compared to international competitors may sustain this momentum. Investors should focus on companies heavily integrating AI solutions and those offering AI technologies.
ARKQ
Positive
The overall uptick in AI-related stocks indicates a continuing trend that will likely lead to exponential growth in the AI tech market in China. The broader implications for this could position tech-focused ETFs well for growth.
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