This year has seen a remarkable rise in the prominence of DeepSeek, a company that has captured the attention of the artificial intelligence (AI) sector with its innovative technology and strategic advantagesUniquely positioned in the AI race, DeepSeek has demonstrated that it can thrive where traditional large models often falter, primarily due to their overwhelming dependence on vast, high-end computation power.

What sets DeepSeek apart is its pioneering algorithm optimization that significantly eases the hardware constraints typically associated with AI deploymentsWhere many industry players require heavy investment in high-performance computing systems, DeepSeek manages to run efficiently on limited processing capacityThis approach not only sustains performance but also enhances accessibility for smaller entities, thus redefining operational paradigms within cloud computing.

Industry experts suggest that this innovative methodology presents new growth opportunities for the cloud computing sectorThe cost of cloud services can potentially be lowered significantly, thereby widening the scope of applications and igniting fresh demand for cloud solutionsOn February 10, there was a notable surge in the A-share market, prominently featuring DeepSeekCompanies within the cloud computing sector experienced a wave of rising stock prices, with the China Securities Institute's AI index increasing by 2.3% and the Cloud Computing & Big Data Index climbing by 3%.

Various analysts shared with the 21st Century Business Herald that the stock market rush triggered by DeepSeek is not merely a fleeting market trend but signals a profound transformation in the cloud computing industryCITIC Securities voiced its expectations that the low deployment costs associated with DeepSeek could significantly boost AI penetration across various sectors, stimulating rapid iterations and commercialization within robotics and broader AI fields.

DeepSeek’s influence in the cloud computing landscape has been gaining momentum, as indicated by data from East Money Choice, which revealed that by February 10, 32 listed companies within the cloud computing sector had hit their upper daily price limits

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Several individual stocks, such as Hangang Co., Dream Network Technology, and QCloud Technology-U, consistently recorded four consecutive days of price surgesMeanwhile, companies like Digital China, Changshan Beiming, and others managed two consecutive days of price restrictions.

Notably, Hangang Co. has been active in establishing its presence in the cloud computing and big data sectorsBy June 2024, the company is projected to utilize 2,897 server cabinets and deploy over 22,400 servers in its cloud computing data centerOn February 3, its subsidiary announced the completion of the adaptation work for the DeepSeek-R1 large model and achieved a complete range of distilled model deployments that transitioned from 7 billion to 17 billion parameters based on locally-produced GPU clusters.

In addition to Hangang Co., other industry players, including UCloud and QCloud Technology, experienced stock price increases on February 10 as they positioned themselves as cloud computing vendors leveraging DeepSeek’s innovations.

Reports also revealed that UCloud's model service platform, UModelVerse, recently launched the full versions of DeepSeek-R1 and DeepSeek-V3 modelsBy deploying these models based on DeepSeek’s open-source versions at the UCloud Intelligent Computing Center, they have made advanced AI capabilities accessible via API calls, including support for international access.

On February 6, QCloud announced the integration of DeepSeek into various products under its ecosystemSince its inception in 2014, QCloud has transitioned from public cloud services to a hybrid cloud market strategy and reports that cloud service revenues now account for over half of the company’s revenue with a projected 50.48% share in the first half of 2024.

Dream Network Technology has also integrated DeepSeek’s large model into its multi-source AI scheduling engine, Tianhui Zhihuitai 2.0. The company’s Dream Network Data Center in Anshan has established itself as the only third-party international-class A data center facilitating three-network integration in Northeast China

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Just last April, they announced an investment completion in New Computing (Beijing) Technology Co., further boosting their infrastructure capabilities.

Underlying this stock explosion is DeepSeek itself, often referred to as the driving force reshaping the trajectory of the cloud computing realmMajor platforms such as Alibaba Cloud, Baidu Intelligent Cloud, Huawei Cloud, and Tencent Cloud have all adopted DeepSeek models, allowing users to leverage these advanced capabilities seamlesslyAlibaba Cloud’s Baolian platform now features multiple DeepSeek models, enabling users to access services affordably with free tokens—a game-changer in user experienceTencent Cloud has also added DeepSeek-R1 and V3 models for API integration, while Baidu Intelligent Cloud has incorporated several large model applications to cater to diverse enterprise needs.

The moves made by these tech giants not only consolidate DeepSeek’s influence within the cloud computing realm but also push their cloud services further towards smart and efficient paradigms.

An institutional analyst provided insights that as DeepSeek’s technology continues to mature and expand, the future of cloud computing services will likely become increasingly user-friendly, efficient, and versatileBusinesses can anticipate leveraging the fusion of cloud computing with DeepSeek technology to facilitate further breakthroughs in AI, propelling the industry to new heights.

Industry insiders believe that DeepSeek's implications for cloud computing can be categorized into three major pillars: lowering computation costs while enhancing resource utilization, inspiring a surge in market demand and subsequently pushing for cloud service upgrades, and heralding a potential reshaping of the entire cloud computing market landscape.

Traditionally, large model training relied on substantial financial investments in high-end calculation hardware with low resource efficiencyHowever, by optimizing algorithms, DeepSeek has facilitated efficient operations under constrained computational conditions, effectively lowering training costs

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This shift allows cloud computing providers to minimize reliance on expensive high-end GPUs and instead utilize their existing computational resources more effectively to deliver value to customers.

Small-scale cloud enterprises that previously struggled under the weight of high computation costs can now engage in similar AI services without prohibitive expenditures, thus expanding their market reach significantly courtesy of DeepSeek technology.

With DeepSeek’s rapid rise, there’s been an explosion in demand for AI applications from individuals and businesses alike, eager to harness this technology to improve efficiency and competitivenessThis surge invariably stimulates demand for cloud computing services, as both model training and application necessitate solid computational backing.

In an effort to meet evolving market needs, cloud computing providers have been upgrading their services, introducing flexible computation leasing options, optimizing model deployment processes, and enhancing network bandwidthFor instance, Alibaba Cloud optimized its elastic computing services post DeepSeek model integration, streamlining the process to allocate computational resources rapidly and respond in real-time to model training and inference demands.

Moreover, DeepSeek’s emergence has disrupted conventional power dynamics within the cloud computing landscapeWhile dominant players leveraged immense computing power and technological advantages, mid-tier cloud firms now have an opportunity to innovate and evolve by collaborating with DeepSeek, rapidly enhancing their service capabilities and attracting new clientele.

Research reports have highlighted that DeepSeek fosters a level playing field by diminishing the gap with overseas models, while its effective training methods lower computational thresholds significantlyThis reduced barrier presents cloud advertisers the continual opportunity to deploy "killer" applications at lower costs, thus progressively broadening their scope of engagement.

Recently, leading cloud platforms—including Alibaba Cloud, Baidu Intelligent Cloud, Huawei Cloud, and Tencent Cloud, along with the three major telecom operators—have announced their integration of DeepSeek models

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