Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Joburg the epicentre of South Africa's tech brain drain

      Joburg the epicentre of South Africa’s tech brain drain

      22 June 2026
      South Africa went cashless - except for the millions who didn't

      South Africa went cashless – except for the millions who didn’t

      22 June 2026
      That drone over your house is almost certainly breaking the law

      That drone over your house is almost certainly breaking the law

      22 June 2026
      DStv Stream to come pre-installed on Samsung TVs across Africa

      DStv Stream to come pre-installed on Samsung TVs across Africa

      22 June 2026
      Brazil's online gambling crackdown is a lesson for South Africa

      Brazil’s online gambling crackdown is a lesson for South Africa

      22 June 2026
    • World

      SK Hynix ends Samsung’s 26-year reign at the top

      22 June 2026
      Google on the hook for what its AI tells users, court rules

      Google on the hook for what its AI tells users, court rules

      15 June 2026
      How Russians juggle VPNs to outwit the Kremlin

      How Russians juggle VPNs to outwit the Kremlin

      15 June 2026
      Amazon CEO flagged Anthropic AI risks to Washington - Andy Jassy

      Amazon CEO flagged Anthropic AI risks to Washington

      14 June 2026
      Trouble at Xbox

      Trouble at Xbox

      11 June 2026
    • In-depth
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
      Alfa's electric rebel - Alfa Romeo Junior Elettrica Veloce

      Alfa’s electric rebel

      29 April 2026
      Africa switches on as Europe dims the lights

      Africa switches on as Europe dims the lights

      9 April 2026
    • TCS
      Watts & Wheels S1E6: 'A flawless Alfa and a bakkie that divides'

      Watts & Wheels S1E6: ‘A flawless Alfa and a bakkie that divides’

      17 June 2026
      Watts & Wheels S1E6: 'A flawless Alfa and a bakkie that divides'

      Watts & Wheels S1E5: ‘A Bentley of the bush and a car that swims’

      8 June 2026
      TCS | Charge's R1.8-billion bet on an off-grid EV future - Charge chairman Joubert Roux

      TCS | Charge’s R1.8-billion bet on an off-grid EV future

      18 May 2026
      TCS+ | The Up&Up Group on the hidden cost of AI - Jason Harrison

      TCS+ | The Up&Up Group on the hidden cost of AI

      13 May 2026
      Michael Rossouw

      TCS+ | The retirement decision most South Africans get wrong

      6 May 2026
    • Opinion
      Finish the job Mandela started - Farzam Ehsani

      Finish the job Mandela started

      18 June 2026
      The author, Fanie van Rooyen

      The US just showed it can switch off our AI

      17 June 2026
      The clock is ticking on South African banks' biggest advantage - Pambos Soteriades

      The clock is ticking on South African banks’ biggest advantage

      9 June 2026

      Clashing judgments leave South Africa’s crypto law unsettled

      2 June 2026
      The clock is ticking on South African banks' biggest advantage - Pambos Soteriades

      The trap inside South Africa’s banking MVNO boom

      1 June 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM Telecom
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » AI and machine learning » DeepSeek is just one player in China’s booming AI industry
    DeepSeek is just one player in China's booming AI industry

    DeepSeek is just one player in China’s booming AI industry

    By Mimi Zou7 March 2025

    When small Chinese artificial intelligence company DeepSeek released a family of extremely efficient and highly competitive AI models last month, it rocked the global tech community. The release revealed China’s growing technological prowess. It also showcased a distinctly Chinese approach to AI advancement.

    This approach is characterised by strategic investment, efficient innovation and careful regulatory oversight. And it’s evident throughout China’s broader AI landscape, of which DeepSeek is just one player.

    In fact, the country has a vast ecosystem of AI companies.

    Alibaba is already working with Apple to incorporate its existing AI models into Chinese iPhones

    They may not be globally recognisable names like other AI companies such as DeepSeek, OpenAI and Anthropic. But each has carved out its own speciality and is contributing to the development of this rapidly evolving technology.

    The giants of China’s technology industry include Baidu, Alibaba and Tencent. All these companies are investing heavily in AI development.

    Alibaba CEO Eddie Wu earlier this month said the multibillion-dollar company plans to “aggressively invest” in its pursuit of developing AI that is equal to, or more advanced than, human intelligence.

    The company is already working with Apple to incorporate its existing AI models into Chinese iPhones. (Outside China, iPhones offer similar integration with OpenAI’s ChatGPT.)

    But a new generation of smaller, specialised AI companies has also emerged. For example, Shanghai-listed Cambricon Technologies focuses on AI chip development. Yitu Technology specialises in healthcare and smart city applications. Megvii Technology and CloudWalk Technology have carved out niches in image recognition and computer vision, while iFlytek creates voice recognition technology.

    Innovative paths to success

    Despite US chip sanctions and China’s restricted information environment, these Chinese AI companies have found paths to success.

    US companies such as OpenAI have trained their large language models on the open internet. But Chinese companies have used vast datasets from domestic platforms such as WeChat, Weibo and Zhihu. They also use government-authorised data sources.

    Read: Microsoft, Meta defend hefty AI spending after DeepSeek stuns tech world

    Many Chinese AI companies also embrace open-source development. This means they publish detailed technical papers and release their models for others to build upon. This approach focuses on efficiency and practical application rather than raw computing power.

    The result is a distinctly Chinese approach to AI.

    Importantly, China’s state support for AI development has also been substantial. Besides the central government, local and provincial governments have provided massive funding through venture funds, subsidies and tax incentives.

    China has also established at least 48 data exchanges across different cities in recent years. These are authorised marketplaces where AI companies can purchase massive datasets in a regulated environment.

    By 2028, China also plans to establish more than 100 “trusted data spaces”.

    These are secure, regulated environments designed to standardise data exchanges across sectors and regions. They will form the foundation of a comprehensive national data market, allowing access to and use of diverse datasets within a controlled framework.

    A strong education push

    The growth of the AI industry in China is also tied to a strong AI education push.

    In 2018, China’s ministry of education launched an action plan for accelerating AI innovation in universities.

    Publicly available data shows 535 universities have established AI undergraduate majors and some 43 specialised AI schools and research institutes have also been created since 2017. (In comparison, there are at least 14 colleges and universities in the US offering formal AI undergraduate degrees.)

    China and the US dominate the global AI landscape. But several significant players are emerging elsewhere

    Together, these institutions are building an AI talent pipeline in China. This is crucial to Beijing’s ambition of becoming a global AI innovation leader by 2030.

    China’s AI strategy combines extensive state support with targeted regulation. Rather than imposing blanket controls, regulators have developed a targeted approach to managing AI risks.

    The 2023 regulations on generative AI are particularly revealing of Beijing’s approach.

    They impose content-related obligations specifically on public-facing generative AI services, such as ensuring all content created and services provided are lawful, uphold core socialist values and respect intellectual property rights. These obligations, however, exclude generative AI used for enterprise, research and development. This allows for some unrestricted innovation.

    International players

    China and the US dominate the global AI landscape. But several significant players are emerging elsewhere.

    For example, France’s Mistral AI has raised more than €1-billion to date to build large language models. In comparison, OpenAI raised US$6.6-billion in a recent funding round, and is in talks to raise a further $40-billion.

    Other European companies are focused on specialised applications, specific industries or regional markets. For example, Germany’s Aleph Alpha offers an AI tool that allows companies to customise third-party models for their own purposes.

    In the UK, Graphcore is manufacturing AI chips and Wayve is making autonomous driving AI systems.

    The US is wrong about ChinaDeepSeek’s breakthrough last month demonstrated massive computing infrastructure and multibillion dollar budgets aren’t always necessary for the successful development of AI.

    For those invested in the technology’s future, companies that achieve DeepSeek-level efficiencies could significantly influence the trajectory of AI development.

    We may see a global landscape where innovative AI companies elsewhere can achieve breakthroughs, while still operating within ecosystems dominated by American and Chinese advantages in talent, data and investment.

    Read: DeepSeek fails to deter $325-billion gamble of the century

    The future of AI may not be determined solely by who leads the race. Instead, it may be determined by how different approaches shape the technology’s development.

    China’s model offers important lessons for other countries seeking to build their AI capabilities while managing certain risks.The Conversation

    Get breaking news from TechCentral on WhatsApp. Sign up here.

    • The author, Mimi Zou, is professor in the school of private and commercial law, UNSW Sydney
    • This article is republished from The Conversation under a Creative Commons licence. Read the original article

    Don’t miss:

    TCS | Deep impact: Dean Furman on the implications of China’s DeepSeek

    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Alibaba Anthropic Baidu DeepSeek Mimi Zou OpenAI Tencent
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleCan South Africa quit its deadly coal habit?
    Next Article The darkest hour: Eskom load shedding strikes again

    Related Posts

    AI agents are coming to your Visa card

    AI agents are coming to your Visa card

    19 June 2026
    The author, Fanie van Rooyen

    The US just showed it can switch off our AI

    17 June 2026
    US scored 'own goal' with ban on top Anthropic model

    US scored ‘own goal’ with ban on top Anthropic model

    15 June 2026
    Company News
    A smarter way to buy or renew your Red Hat subscriptions - LSD Open

    A smarter way to buy or renew your Red Hat subscriptions

    22 June 2026
    Moving past the pilot: inside the CloudZA and AWS closed-door AI executive roundtable

    CloudZA and AWS chart the road from AI pilots to production

    19 June 2026
    The role of edge infrastructure in South Africa's AI leap - OADC Open Access Data Centres

    The role of edge infrastructure in South Africa’s AI leap

    19 June 2026
    Opinion
    Finish the job Mandela started - Farzam Ehsani

    Finish the job Mandela started

    18 June 2026
    The author, Fanie van Rooyen

    The US just showed it can switch off our AI

    17 June 2026
    The clock is ticking on South African banks' biggest advantage - Pambos Soteriades

    The clock is ticking on South African banks’ biggest advantage

    9 June 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Joburg the epicentre of South Africa's tech brain drain

    Joburg the epicentre of South Africa’s tech brain drain

    22 June 2026
    South Africa went cashless - except for the millions who didn't

    South Africa went cashless – except for the millions who didn’t

    22 June 2026
    A smarter way to buy or renew your Red Hat subscriptions - LSD Open

    A smarter way to buy or renew your Red Hat subscriptions

    22 June 2026
    That drone over your house is almost certainly breaking the law

    That drone over your house is almost certainly breaking the law

    22 June 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}