"DeepSeek demonstrates that China is at or near the cutting edge of AI development, which boosts the prestige of China's economy and tech ecosystem, making them more attractive for global investors," said Gabriel Wildau, managing director at Teneo.
The company's launch of a cheaper and more efficient AI model came as a timely confidence boost as the Chinese leadership faces a prolonged economic gloom, partly owed to the slump in its property market, while the specter of a fierce trade war with the U.S. looms large.