In less than two years since its founding in July 2023, Chinese artificial intelligence (AI) startup DeepSeek has rapidly integrated its AI models across multiple industries, including automotive, telecommunications, finance, and consumer electronics. This swift adoption underscores China's strategic push for self-reliance in AI development amid global technological competition.

DeepSeek, officially known as Hangzhou DeepSeek Artificial Intelligence Basic Technology Research Co., Ltd., is headquartered in Hangzhou, Zhejiang. Founded by Liang Wenfeng, who also serves as CEO, the company specializes in developing large language models (LLMs). Its reasoning model, DeepSeek-R1, released in January 2025, has been particularly noteworthy for its cost-effective training methods. The company claims to have trained its V3 model for approximately $6 million, significantly less than the estimated $100 million cost for OpenAI's GPT-4 in 2023.

In the automotive sector, BMW announced plans to incorporate DeepSeek's AI into its new vehicle models in China starting later in 2025. CEO Oliver Zipse emphasized the importance of China's advancements in AI technology and highlighted BMW's strengthened partnerships with Chinese firms to enhance vehicle intelligence. Similarly, Geely Auto has integrated DeepSeek's models to enhance in-car AI features, such as voice control and high-precision mapping. A promotional video demonstrates a driver saying, "I'm a bit tired," prompting the DeepSeek-powered system to adjust the car's settings for a nap.

China's three major telecom operators—China Mobile, China Telecom, and China Unicom—have fully integrated the DeepSeek-R1 model into their networks. This integration aims to promote the inclusive application of the latest AI technology within the telecommunications industry. The Ministry of Industry and Information Technology (MIIT) confirmed that these operators are applying the DeepSeek-R1 model across various scenarios and products, offering customized computing power solutions and supporting environments.

In the financial sector, Tiger Brokers incorporated DeepSeek's AI model into its chatbot services in February 2025. This move reflects a broader trend among Chinese brokerages and fund managers to leverage AI for financial applications, enhancing customer service and operational efficiency.

Consumer electronics companies have also embraced DeepSeek's technology. Honor, a leading smartphone brand, integrated DeepSeek-R1 into its virtual assistants, enhancing natural language processing capabilities. This integration allows for more sophisticated and human-like interactions between users and their devices.

The widespread adoption of DeepSeek's AI models aligns with the Chinese government's emphasis on self-reliance and innovation in AI development. President Xi Jinping has called for leveraging China's "new whole national system" to advance AI technologies, including fundamental research, industrial growth, and practical applications. He stressed the need to strengthen core technologies, such as high-end chips and basic software, to build a self-sustained AI infrastructure. Xi also advocated for enhanced global cooperation and governance in AI, emphasizing that AI development should not be monopolized by wealthier nations.

However, the rapid integration of DeepSeek's AI models has raised concerns. In April 2025, South Korea's Personal Information Protection Commission accused DeepSeek of transferring user data and prompts without obtaining proper consent. The commission recommended corrective measures, including the deletion of previously transferred data and the establishment of a legal framework for any further international data transfers.

DeepSeek's rapid integration into multiple industries underscores its significant impact on China's technological landscape. While offering numerous benefits, this development also presents challenges related to data privacy and ethical considerations. As AI continues to evolve, it is crucial to balance innovation with responsible practices to ensure sustainable and ethical growth in the sector.