<p>Beijing: Market reaction to DeepSeek's preview of its long-awaited next-generation artificial intelligence model has so far been subdued compared with the Chinese startup's outsized global breakthrough last year after the launch of its low-cost AI models.</p><p>The release and overseas reception of DeepSeek-V3 and R1, which the Hangzhou-based company said were trained with a fraction of the computing power used by U.S. rivals, triggered a global tech share selloff as investors questioned the logic behind massive spending on AI infrastructure.</p>.Alibaba's AI strategy shift comes into focus with big bets on agents.<p>That moment was widely viewed by analysts as a "black swan" event that forced a sudden repricing of assumptions about cost, competition, and China's ability to innovate under U.S. chip restrictions.</p><p>But the muted reaction so far to DeepSeek-V4, launched on Friday, highlights how quickly those assumptions have shifted. Markets and industries have grown accustomed to low-cost, highly efficient models developed under computing constraints, reducing the element of surprise.</p><p>"This announcement followed a rather predictable path," said Lian Jye Su, chief analyst at Omdia, noting that advances in model architectures and efficiency have since been widely explored across industry and academia.</p>.China's DeepSeek trained AI model on Nvidia's best chip despite US ban, official says.<p>Benchmark data support that view. According to Artificial Analysis, DeepSeek-V4 Pro shows significant improvement over previous versions but overall ranks among leading open-weight models rather than clearly surpassing rivals, with competitors such as Kimi and Qwen narrowing the gap.</p><p>That contrasts with last year, when DeepSeek appeared to leap ahead of domestic peers, driving rapid adoption in China and amplifying its global impact.</p><p>Analysts say the earlier shock was driven by a convergence of factors: lofty valuations of U.S. tech firms, expectations of continued dominance by a handful of players, and the emergence of a relatively unknown Chinese startup delivering unexpectedly strong results.</p><p>Those conditions are no longer present.</p><p>"The expectation that new players will emerge is now baked into valuations," Su said, adding that markets have become more realistic about both the capabilities and limits of AI.</p><p>At the same time, competition within China has intensified, with multiple firms releasing increasingly capable models, eroding DeepSeek's relative lead.</p><p>On Monday, stock markets in South Korea and Taiwan hit new highs, buoyed by broad optimism for AI-related stocks.</p><p>Alfredo Montufar-Helu, managing director at Ankura China Advisors, said the significance of V4 lies less in market impact and more in the U.S.-China race for tech supremacy.</p><p>He pointed to DeepSeek's adaptation of V4 to run best on Huawei chips, as tightening U.S. export controls are designed to cut off the Chinese market's access to cutting-edge U.S. chips that power AI model development.</p><p>"The 'wow factor' was last year – that's already priced in," he said. "What matters now is whether China can continue advancing on AI development, and potentially do so with its own chips - the geopolitical implications would be significant." (Reporting by Eduardo Baptista; Editing by Jacqueline Wong)</p>
<p>Beijing: Market reaction to DeepSeek's preview of its long-awaited next-generation artificial intelligence model has so far been subdued compared with the Chinese startup's outsized global breakthrough last year after the launch of its low-cost AI models.</p><p>The release and overseas reception of DeepSeek-V3 and R1, which the Hangzhou-based company said were trained with a fraction of the computing power used by U.S. rivals, triggered a global tech share selloff as investors questioned the logic behind massive spending on AI infrastructure.</p>.Alibaba's AI strategy shift comes into focus with big bets on agents.<p>That moment was widely viewed by analysts as a "black swan" event that forced a sudden repricing of assumptions about cost, competition, and China's ability to innovate under U.S. chip restrictions.</p><p>But the muted reaction so far to DeepSeek-V4, launched on Friday, highlights how quickly those assumptions have shifted. Markets and industries have grown accustomed to low-cost, highly efficient models developed under computing constraints, reducing the element of surprise.</p><p>"This announcement followed a rather predictable path," said Lian Jye Su, chief analyst at Omdia, noting that advances in model architectures and efficiency have since been widely explored across industry and academia.</p>.China's DeepSeek trained AI model on Nvidia's best chip despite US ban, official says.<p>Benchmark data support that view. According to Artificial Analysis, DeepSeek-V4 Pro shows significant improvement over previous versions but overall ranks among leading open-weight models rather than clearly surpassing rivals, with competitors such as Kimi and Qwen narrowing the gap.</p><p>That contrasts with last year, when DeepSeek appeared to leap ahead of domestic peers, driving rapid adoption in China and amplifying its global impact.</p><p>Analysts say the earlier shock was driven by a convergence of factors: lofty valuations of U.S. tech firms, expectations of continued dominance by a handful of players, and the emergence of a relatively unknown Chinese startup delivering unexpectedly strong results.</p><p>Those conditions are no longer present.</p><p>"The expectation that new players will emerge is now baked into valuations," Su said, adding that markets have become more realistic about both the capabilities and limits of AI.</p><p>At the same time, competition within China has intensified, with multiple firms releasing increasingly capable models, eroding DeepSeek's relative lead.</p><p>On Monday, stock markets in South Korea and Taiwan hit new highs, buoyed by broad optimism for AI-related stocks.</p><p>Alfredo Montufar-Helu, managing director at Ankura China Advisors, said the significance of V4 lies less in market impact and more in the U.S.-China race for tech supremacy.</p><p>He pointed to DeepSeek's adaptation of V4 to run best on Huawei chips, as tightening U.S. export controls are designed to cut off the Chinese market's access to cutting-edge U.S. chips that power AI model development.</p><p>"The 'wow factor' was last year – that's already priced in," he said. "What matters now is whether China can continue advancing on AI development, and potentially do so with its own chips - the geopolitical implications would be significant." (Reporting by Eduardo Baptista; Editing by Jacqueline Wong)</p>