The technological landscape is experiencing a seismic shift with the emergence of DeepSeek, a groundbreaking computational model that is rapidly gaining traction across various sectorsNot only have multiple platforms announced their integration with DeepSeek, but organizations spanning industries—from automotive giants to government agencies—are eager to harness its capabilitiesWith its optimization algorithms reducing computational demands significantly, DeepSeek serves as a catalyst for accelerated AI adoption, paradoxically leading to a skyrocketing demand for computing powerThis innovation presents an unprecedented opportunity for the domestic computing industry, potentially positioning it on par with global leaders like NVIDIA.

Expanding Horizons of DeepSeek

In the span of just one month, the buzz surrounding DeepSeek has ignited interest across a broad spectrum of sectorsMajor tech companies, government bodies, automotive corporations, and smartphone manufacturers are now eager to embrace DeepSeek, which has become a trending topicFor instance, on February 16, both Baidu’s search engine and its Wenxin AI platform announced comprehensive integration with DeepSeek, allowing users to engage with advanced deep search functionalities free of chargeDevelopers on the Wenxin platform can also readily invoke DeepSeek’s model to create and refine smart agents.

On the same day, it was evident that Baidu was not the first search platform to adopt DeepSeekSeveral WeChat users discovered that the platform had integrated an “AI Search” feature powered by DeepSeek-R1. According to Tencent, the WeChat search function is undergoing a pilot test with DeepSeek, enhancing the user experience with a more diverse array of search results.

Moreover, Shenzhen’s local government announced an initiative to fully implement DeepSeek’s model application services across various districts and departments, signaling a move toward integrated AI-powered public service solutions

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This aligns with earlier announcements made by the governmental bodies in cities such as Guangzhou and Wuxi regarding the deployment of DeepSeek to improve bureaucratic processes and enhance smart city developments.

The broad adoption of DeepSeek across leading internet applications and public service platforms indicates its successful penetration into diverse user demographicsCurrent statistics reflect that DeepSeek has emerged as the fastest application to surpass 30 million daily active users, marking a monumental achievement in its deployment.

The enthusiasm around DeepSeek doesn’t stop thereSeveral cloud service providers—including tech behemoths like Huawei, Alibaba, and Jingdong—have already announced their integration with DeepSeek’s architectureApproximately 20 automotive industry players have committed to embedding DeepSeek into their vehicles, underscoring its applicability across telecommunications, finance, and mobile technology.

Industry experts believe that the swift traction that DeepSeek has gained is attributable to its ability to dispel the prevailing notion that larger models inherently carry higher costsBy achieving high efficiency at a low expense, DeepSeek offers a viable industrialization pathway for large models while concurrently leveraging open-source strategies to develop an ecosystem that insulates it from competitionThis shift heralds the conclusion of an era dominated by excessive resource allocation in large model development spurred by the excitement ignited by ChatGPT.

Future Demand for Computational Power

Despite its advancements in operational efficiency and model performance, DeepSeek also challenges the industry to rethink the necessity of extensive computational investmentsRenowned economist Jevons’ Paradox, which posits that increased resource efficiency often leads to greater total consumption, could re-emerge in the context of AI models

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As DeepSeek slashes inference costs by a staggering 97%, the demand for computational power is anticipated to rise exponentially due to its cost-effectiveness.

A recent report from IDC, in collaboration with Inspur Information, highlights that DeepSeek’s innovative algorithms are stimulating demand for new applications, which is significantly enhancing the evolution of data centers and edge computing.

According to analysts from Tianfeng Securities, the technological innovation introduced by DeepSeek minimizes hardware dependencies, shortens training times, and drastically lowers investment costsThis shift empowers more downstream application companies to participate in large model initiatives, while its open-source philosophy removes technical barriers, enabling developers to customize solutions tailored to their unique business needs.

Notably, DeepSeek has integrated more rapidly into consumer smartphones than any other large model, demonstrating its potential for widespread adoption across various sectors, including in the developer and corporate realmsIndustry insiders point out that while the reduction in training costs may initially temper demand for computational power, the affordability of DeepSeek is likely to incentivize businesses previously hesitant to engage with large models, subsequently driving cumulative resource needs upward.

The capital market, ever attuned to emerging trends, began responding to DeepSeek’s ascent even before the Lunar New Year, with a wave of optimism sweeping across the entire computational ecosystemReports from multiple brokerage firms are urging investors to capitalize on the opportunities arising from a potential “computational shortage.”

Experts within the computational sector predict a dual trajectory of development for large models that emphasizes both technological refinement and engineering innovation

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The demand for computing resources, they assert, will continue to growInnovations like DeepSeek are steering companies towards a heightened focus on accessible, user-friendly platforms while also prioritizing performance and cost efficiency.

A Domestic Opportunity Awaits

In light of the burgeoning application demands spurred by DeepSeek, the domestic computational industry is fervently investing in adapting DeepSeek models, speeding up the development of locally supported hardware and software capabilitiesThis initiative aims to propel collaborative innovations in hardware and software.

On February 4, the DeepSeek model series made a formal debut on the Ascend Community platform, allowing developers to easily access these models for use on the Ascend hardware platforms with no setup hassles.

Notably, Ascend has been instrumental in the DeepSeek project since its inception, providing a robust AI infrastructure that caters to a wide array of applicationsThe recent release of DeepSeek-V3 has confirmed compatibility with Ascend technology, thereby enabling high-efficiency inference across the Ascend ecosystem.

All three major telecommunications firms have also promptly integrated the DeepSeek model, with each company offering extensive support for the entire range of DeepSeek productsThis integration highlights a concerted effort to utilize Ascend’s capabilities to ensure widespread availability of DeepSeek services across China.

Furthermore, AI infrastructure providers are launching DeepSeek-compatible inference APIs and cloud mirror services based on Ascend technology, indicating a burgeoning ecosystem of over 30 companies producing integrated solutions, with services accessible to over 70% of regions throughout the nation.

The consensus in the industry is that there exists a unique opportunity for domestic computational enterprises to compete head-to-head with NVIDIA’s ecosystem

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