Chinese automaker Great Wall Motor and the nation's top telecom providers are integrating DeepSeek's cutting-edge AI model into their systems, marking a significant step in China's push to lead the global AI race. Great Wall Motor, the country's first listed car manufacturer, has incorporated DeepSeek's technology into its 'Coffee Intelligence' connected vehicle system to enhance its smart car capabilities. Meanwhile, China's three major telecom giants, China Mobile, China Unicom, and China Telecom, are collaborating with DeepSeek to promote the widespread adoption of advanced AI solutions, signalling a broader effort to modernise the country's tech infrastructure.

Integrating DeepSeek's AI platform has ignited a wave of optimism among investors, who see it as a potential game-changer for China's tech sector. Shares of AI-related companies, including chipmakers, software developers, and data centre operators, have recently surged as market participants bet on the transformative impact of the technology. However, some firms have tempered expectations, cautioning that the immediate business benefits remain uncertain. For instance, Capitalonline Data Service, a cloud computing provider, saw its shares soar 49% last week after deploying DeepSeek's model but emphasised that the long-term financial impact is still unclear.

Similarly, MeiG Smart Technology, a Shenzhen-based company specialising in IoT devices, reported that its work on adapting DeepSeek's AI is in its early stages and has yet to generate new revenue. Despite this, its shares jumped 33% in three days, reflecting the market's enthusiasm for AI-driven innovation. Other tech heavyweights like Tencent and Huawei have also announced plans to integrate DeepSeek's technology, further fueling the narrative of China's AI ambitions.

Why does it matter?

The rapid adoption of DeepSeek's AI model highlights China's determination to compete globally in the AI arena, with both private and state-owned enterprises rallying behind the technology. While the immediate economic impact remains uncertain, the move underscores the growing importance of AI in reshaping industries from automotive to telecommunications. As Chinese companies continue to innovate, the world will watch how this AI-driven transformation unfolds.