Chinese AI Companies Celebrate DeepSeek's Success, Unfazed by Global Restrictions

SHANGHAI, Feb 21, 2025 (BSS/AFP) – Chinese tech companies are undeterred by global scrutiny of DeepSeek, the rising chatbot maker, with many expressing confidence that the country's AI startups will continue to make significant strides in the global tech race.

Last month, DeepSeek's R1 chatbot surprised the industry by matching the capabilities of its Western counterparts at a fraction of the cost, earning widespread praise in China’s AI sector.

However, concerns over the app's handling of users’ personal data have led several countries, including South Korea, Italy, Australia, and some US states, to ban or restrict its use.

"In recent years, China has faced various restrictions, especially from the US," said Sun Dasheng, an employee of AI server maker Puersai Computer, at Shanghai’s Global AI Developers' Conference. "But our country is currently sparing no effort to move forward," he added.

Sun’s optimism was shared by other exhibitors at the conference, who proudly displayed banners and posters highlighting their use of DeepSeek’s open-source software, despite the company's absence from the event.

Humanoid robots were showcased throughout the conference, including a model that recently danced on CCTV's Lunar New Year program, viewed by millions.

"With the (R1) model now available, we believe industries tied to large language models will advance even further," said Mark Feng, product manager at Mobvoi, a chatbot company.

Before DeepSeek's rise, many doubted that China could produce an AI model to rival those of the United States, according to Lian Feng, an employee at Tiangang AI Trading Platform. Lian emphasized that China’s ability to develop advanced AI software—coupled with its dominance in the tech supply chain—puts it in a strong position globally.

• "Wake-up Call"

US President Donald Trump has described DeepSeek's release as a "wake-up call" for American companies, noting the R1 app’s development cost was far lower than similar US efforts. DeepSeek claims to have spent just $5.6 million on the project, a tiny fraction of the $500-billion AI initiative backed by Trump.

Lian compared DeepSeek’s success to the launch of Android in 2008, which offered a cheaper alternative to the iPhone and eventually dominated the smartphone market. "The high price of Apple's iPhones obstructed the explosive growth of smartphones and the mobile internet era," Lian remarked.

He believes DeepSeek will have a similar transformative effect on the generative AI market, much like Android revolutionized the smartphone industry.

"I think there’s still room for us to grow... In three to five years, we’ll see an even better picture," said Sun from Puersai Computer.