Beijing: One year after Chinese startup DeepSeek surprised the global technology industry with its powerful and affordable artificial intelligence model, China is now preparing for a fresh wave of low cost AI launches. Industry experts say the impact of DeepSeek’s breakthrough is still being felt across the country’s fast growing tech sector.
When DeepSeek introduced its open source model in early 2025, it challenged the belief that only major United States companies with massive budgets could build advanced AI systems. The company showed that strong performance could be achieved at a much lower cost. That moment pushed many Chinese firms to rethink their strategies and speed up development.
Now several companies are preparing new models aimed at businesses and developers. Zhipu AI has released its latest flagship model, known as GLM 5, which is designed to improve coding abilities and handle longer and more complex tasks. The company has also increased prices for its AI coding services after seeing strong demand from customers. This suggests that companies are not only building models but also finding real commercial use for them.
Other major Chinese technology firms, including Alibaba and ByteDance, are also expanding their AI offerings. Many of these models are open source and focus on affordability, making them attractive to smaller businesses and independent developers.
The Chinese government has signaled strong support for the sector. Premier Li Qiang recently said the country should strengthen its power supply and computing resources to support AI growth. Officials believe that improving infrastructure will help companies innovate faster and compete globally.
At the same time, authorities have raised concerns about security risks linked to some open source AI tools. Regulators have warned companies to strengthen safety checks and protect systems from cyber threats. As AI tools become more widely used, concerns about data security and responsible use are also increasing.
Analysts say the next few months could bring even more model launches as competition intensifies. The focus is likely to remain on lower costs, improved performance, and wider access. One year after DeepSeek changed expectations, China’s AI industry appears more active and competitive than ever.
Industry observers believe the coming year will show whether China can close the gap with leading global AI developers while maintaining its emphasis on affordability and rapid deployment.