By Sherry Qin
Shares of China's three largest telecom providers jumped after they integrated the AI model of domestic startup DeepSeek into their offerings.
In mainland China, China Mobile, the country's largest wireless carrier, rose as much as 5.1% early Monday. China Telecom briefly surged 10%, the maximum daily rise allowed in mainland China's market, while China Unicom gained 4.4%.
The three telecom companies have incorporated DeepSeek's model into their services to "promote the inclusive application of the latest AI technology," according to a statement from China's Ministry of Industry and Information Technology on Saturday.
The three telecom companies have also been developing their own large language models over the past few years amid the global AI boom.
DeepSeek has touted its latest AI model, R1, as being particularly effective at problem-solving. The model reportedly performs on par with OpenAI's reasoning model, but at a fraction of the cost per use.
Analysts believe DeepSeek's low-cost, powerful model and its open-source nature could accelerate AI adoption across various sectors in China, especially benefiting businesses involved in cloud applications and AI technologies.
The breakthrough has prompted Chinese companies across industries to adopt DeepSeek's technology. Among the first to do so are PC giant Lenovo Group, Tencent's cloud arm and enterprise software maker Kingdee.
Write to Sherry Qin at sherry.qin@wsj.com
(END) Dow Jones Newswires
February 09, 2025 22:31 ET (03:31 GMT)
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