DeepSeek promises to boost China’s GDP by 2030
The sudden emergence of Chinese startup DeepSeek in the large language models market is becoming a catalyst for the large-scale implementation of artificial intelligence in China and opens new perspectives for the country’s economic growth.
According to Goldman Sachs analysts’ forecasts, the impact of artificial intelligence technologies on China’s economy will begin to manifest as early as next year. Experts expect that by 2030, AI’s contribution to the country’s GDP will amount to 20 to 30 basis points, mainly due to productivity improvements through AI automation.
“DeepSeek’s recent emergence indicates faster AI development and implementation in China than we previously assumed,” note the Wall Street bank’s economists.
DeepSeek’s success is already reflected in the stock market: the MSCI China index has shown impressive growth of more than 21% from January’s minimum, according to LSEG data. Morgan Stanley in its recent report indicates that the emergence of a new player in the AI market is forcing investors to reassess the investment attractiveness of the Chinese market after a long period of skepticism.
“DeepSeek demonstrates that China is at the forefront of AI development or as close as possible to it. This enhances the prestige of China’s economy and technological ecosystem, making them more attractive to global investors,” comments Gabriel Wildau, managing director of Teneo.
Notably, DeepSeek’s success is connected not only with technological achievements but also with economic efficiency: the company developed a competitive AI model at significantly lower costs compared to American competitors. This caused a substantial drop in technology companies’ quotations in Asia and Europe, particularly affecting shares of giants like Nvidia.
DeepSeek is also having a significant impact on China’s internal technological ecosystem: government structures and large technology companies, including competitors, are actively using the startup’s open architecture, which contributes to accelerated development of AI technologies in the country.
