The news of this week according to which the Chatbot Deepseek application, developed by China, was downloaded from the Apple App Store much more than the chatgpt developed by the United States of Open IA, billions of ‘Wip on the global technology market.
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Sudden Deepseek splashes in the Grand Language Model Space gave China a powerful tool to catalyze the adoption of artificial intelligence in the country and stimulate economic growth.
While Goldman Sachs weighs a boost at a point from 20 points to 30 Basins to the long -term China GDP – by 2030 – he expects the country’s economy to begin to reflect the impact positive of the adoption of the AI of next year itself as the Economy of AI Automation improves productivity.
“The recent emergence of Deepseek … suggests a faster development and adoption of AI in China than expected before,” said economists of the Wall Street Bank.
Enthusiasm around Deepseek is also reflected in the net rally in China shares, the MSCI China index is soaring more than 21% compared to its January hollow, according to LSEG data.
The increase in the startup triggers a reassessment of “investbability” of China after a long period of limited attention, said Morgan Stanley in a note this week.
“Deepseek shows that China is at the forefront or next to the development of AI, which stimulates the prestige of the economy and the Chinese technological ecosystem, which makes them more attractive to global investors” Declared Gabriel Wildau, Managing Director of Teneo.
The launch by the company of a cheaper and more efficient AI model was an increase in timely confidence while Chinese management is faced with prolonged economic, partly due to the real estate crisis , while the specter of a fierce trade war with the United States is looming in adults.
Deepseek’s R-1 reasoning model has been praised as being able to match, or even surpass, leading global AI offers in the midst of racing allegations on cheaper and less sophisticated fleas. The open source model can also be reused by business developers to considerably increase efficiency to lower operating costs.
The startup has also shaken the Ecosystem of China AI, with public entities as well as great technological players, including competitors, taking advantage of its open-source architecture.
“The scale and speed of [AI] adoption [in China] is incredibly fast at the moment, and that does not slow down, “said Wei Sun, principal analyst of artificial intelligence at Counterpoint Research.
Beijing approval stamp
During a meeting well choreographed earlier this week, Chinese President Xi Jinping warmly welcomed the founder of Deepseek Liang Wenfeng and granted him a coveted line to the line next to the leaders of the largest private companies in the country.
It has shown that Beijing is eager to support the company, said Huiyao Wang, founder and president of Center for China and Globalization, a reflection group based in Beijing.
“Deepseek represents exactly what Beijing would like to see by the” new quality production force “which will push China forward,” added Wang, referring to a strategy invented by XI last year which bets on technological breakthroughs to fuel growth and productivity gains through the economy.
Last year, Chinese leadership swore “a leap forward” by stimulating new growth engines Based on innovation in advanced sectorsLike AI and semiconductors, as American exports control advanced equipment and the most advanced semiconductors have thwarted its ability to make major technological breakthroughs.
With the Beijing signaling support for the startup, an increasing number of local governments, of Hohhot in northern China In the southern city of Guangzhou and Shenzhen, launch “Civil servants” powered in depth to automate governanceManagement of requests for administrative documents to general public services.
At least three Public telecommunications operators have also adopted The peak model in recent weeks.
Private companies have exploited the new model to see how it can improve productivity. Car manufacturers, financial service companies, smartphones manufacturers and cloud computing operators, including Alibaba, Huawei and Tencent, have rushed in recent weeks to integrate into Deepseek.
“With Deepseek becoming a global familiar name in a few weeks, Beijing is [using it as an opportunity] To present the champions of China technology and demonstrate Chinese technological resilience and innovation in the face of controls led by the United States, “said Reva Goujon, director of the Rhodium Group.
Work concerns
Economists, however, have warned that the pace of AI adoption should be “carefully managed” in China, which is already faced with a low labor market and a high unemployment rate.
The effects of AI’s “destruction of employment”, while increasing labor productivity, could exacerbate deflation and further weaken the economy, said Goldman Sachs.
The unemployment rate of young people in China has remained greater than 15%, with more than 10 million new graduates accumulating each year on the labor market. Job losses have been reported in recent years in the real estate sector, among civil servants and in the financial sector.
Compared to the United States, the Chinese labor market is less subject to the risk of AI automation due to the highest share of less exposed and physically intensive jobs, “said Goldman Sachs. China, in comparing only 19% of total employment in the United States
The sectors that are more inclined to adopt the automation of AI-centered tasks, such as finance, insurance and services, constitute 14% of jobs in the United States, but less than 3% in China, according to Bank estimates.
A PEW study in 2023 revealed that 19% of American workers are in jobs with high exposure to AI. This study used the term “exposure” because it is not clear if the impact of AI will be positive or negative.
Although the application of AI can ensure that the number of displaced workers increases in the short term, these workers will eventually find jobs in other sectors where work has a competitive advantage, helping employment to develop Again, said Goldman.
– Dylan Butts of CNBC, Evelyn Cheng contributed to this report.
