News this week is that the DeepSeek chatbot app developed in China has significantly downloaded from the Apple App Store more than the chat volume of AI developed in the United States, erasing billions of dollars from the global technology market.
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DeepSeek’s sudden splash in large language model spaces provides China with a powerful tool to catalyze the country’s adoption of artificial intelligence and boost economic growth.
Goldman Sachs has long raised China’s GDP to 30 benchmarks (by 2030), but it hopes the country’s economy starts to reflect the positive impact of AI adoption from next year’s automation improvement productivity.
“The recent emergence of DeepSeek … shows that AI development and adoption in China is faster than we had previously expected,” said Wall Street Bank economist.
The enthusiasm surrounding DeepSeek is also reflected in a sharp rally in Chinese stocks, which soared 21% from its January low, according to LSEG data.
Morgan Stanley said in a report this week that the rise of the startup is triggering a reassessment of China’s “investability.”
“DeepSeek shows that China is at the forefront of AI development, which promotes the prestige of China’s economic and technological ecosystems, making them more attractive to global investors,” said Gabriel Wildau, managing director of Teneo.
As Chinese leaders face long economic melancholy, the company launched cheaper, more efficient AI models, a timely confidence, partly due to the downturn in its real estate market, and the ghost of a large trade war with the United States Immediately.
DeepSeek’s R-1 inference model is called Can match or even outperform the market Leading global AI products run on claims that the cheaper and more sophisticated chips are. Developers outside the company can also reuse open source models Greatly improve efficiency with lower operating costs.
The startup also rocked China’s AI ecosystem, with state-owned entities and large tech players including competitors leveraging its open source buildings.
“(AI) adoption (in China) is very fast now and has not slowed down,” said Wei Sun, chief artificial intelligence analyst at Counterpoint Research.
Beijing’s approved stamps
At a well-arranged meeting earlier this week, Chinese President Xi Jinping warmly welcomed DeepSeek founder Liang Wenfeng and awarded him a coveted front seat next to the country’s largest private enterprise leader.
Huiyao Wang, founder and president of the Center for China and Globalization, a Beijing-based think tank, said Beijing is eager to support the company.
“DeepSeek is exactly what Beijing is eager to promote China forward through ‘new quality productivity’, Wang added the economy.
Last year, Chinese leaders vowed to “leap” by stimulating new growth drivers Innovation based on advanced fieldssuch as AI and semiconductors, as the U.S. export controls to advanced equipment and state-of-the-art semiconductors thwarted its ability to achieve major technological breakthroughs.
With the help of Beijing’s signal support for this startup, more and more local governments come from Hohhot in northern China To the southern cities of Guangzhou and Shenzhen are being launched DeepSeek-driven “civil servants” to manage automaticallyconvert requests for administrative paper work into general public services.
At least three State-owned telecom operators have also adopted it Cutting-edge models in recent weeks.
Private businesses explore new models Learn how it improves productivity. Automakers, financial services companies, smartphone manufacturers and cloud computing operators, including Alibaba, Huawei and Tencent, have been eager to integrate with DeepSeek in recent weeks.
Director Reva Goujon said: “With DeepSeek becoming a household name worldwide in a few weeks, Beijing (using this as an opportunity) presents China’s tech champion and demonstrates China’s tech resilience and technology in the face of American-led controls. Innovation.” at Rhodium Group.
Labor worries
But economists warn that in China, the pace of AI adoption should be “carefully managed” which is already facing weak labor markets and high unemployment rates.
Goldman Sachs said that while increasing labor productivity, the impact of AI’s “job damage” could intensify and further weaken the economy.
China’s youth unemployment rate has been above 15%, and more than 10 million new graduates enter the job market every year. In recent years, the real estate sectors of the civil servants and finance have reported unemployment.
Compared with the United States, the Chinese labor market is not easy to withstand the risk of AI automation because of the high exposure and the higher share of physically strengthened work. China, accounting for only 19% of the total U.S. employment
According to the bank’s estimates, the department is easier to adopt AI-driven task automation, such as finance, insurance and services, accounting for 14% of U.S. jobs, but less than 3% in China.
Pew Research in 2023 found 19% of workers in the United States are engaged in high-exposure jobs To AI. The study uses the term “exposed” because it is not clear whether the impact of AI is positive or negative.
Goldman said that while the use of AI could lead to an increase in displaced workers in the near term, those workers will eventually find jobs in other sectors where Labor has a competitive advantage, helping jobs grow again.
– Dylan Butts of CNBC, Evelyn Cheng contributed to the report.
