19.06.2025

China’s AI Boom: DeepSeek and the Impact of US Export Restrictions

The Rise of DeepSeek in the Chinese AI Sector

The AI startup supported by Alibaba and Tencent, regarded as China’s hottest AI bet, is significantly benefiting from the current boom in the Chinese AI industry. This boom was triggered by US export restrictions intended to stifle technological development in China. Instead, they led to an innovation surge and encouraged the growth of domestic AI companies.

DeepSeek as a Pioneer

A shining example of this trend is DeepSeek. With its AI models, the startup has created a strong demand that exceeded its server capacity. Supported by Alibaba and Tencent, DeepSeek is on the verge of significant developments that could be of interest to investors.

Other Key Players

At the same time, major Chinese corporations like Baidu with its autonomous subsidiary Apollo and Huawei with its own high-performance processors are driving technological advancements. Horizon Robotics and Pony AI are further promising competitors in the autonomous driving space in China.

Alibaba’s Investments in AI

Alibaba itself is investing massively in artificial intelligence. As early as 2019, the company developed its own AI chips (Hanguang 800) and introduced the chatbot Tongyi Qianwen in 2023. This supports a variety of applications in the business sector – from email drafts to the analysis of multimedia content.

In summary:

  • The US export restrictions led to an innovation boom in China’s AI industry.
  • The startup DeepSeek plays a central role in this growth.
  • Large tech companies are driving parallel developments in AI technology.
  • For investors, the growth of DeepSeek and technological breakthroughs could be very interesting.

These developments highlight the enormous potential of the Chinese market in the field of artificial intelligence amid global trade conflicts and technological rivalries between the USA and China.