The R1 model is going to get a successor soon. For those who don’t know, Chinese artificial intelligence startup DeepSeek wreaked havoc in the tech world last month with its cut-price AI reasoning model, the R1, claiming that it outperforms many Western competitors.
Only a month later, hundreds of Chinese companies have already integrated the AI model into their products and services. At least 13 Chinese city governments and 10 state-owned energy companies also report deploying DeepSeek into their systems. Tech giants Lenovo, Baidu, and Tencent have integrated it too.
Goldman Sachs anticipates that the country’s economy will reflect the positive impact of AI adoption from next year.
“The recent emergence of DeepSeek … suggests faster AI development and adoption in China than we previously anticipated.”
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The impact of the emergence was so intense, that it triggered a $1 trillion-plus sell-off in global equities markets last month. While the initial release of the R2 model was scheduled for release sometime in May, the company is now planning to launch it as early as possible.
“DeepSeek demonstrates that China is at or near the cutting edge of AI development, which boosts the prestige of China’s economy and tech ecosystem, making them more attractive for global investors”.
-Gabriel Wildau, managing director at Teneo.
DeepSeek is expecting highly of its new model too. The company said that it hopes that its new model will be able to produce better coding and be able to reason in languages beyond English. While competitors are still dealing with the implications of the R1 model, only time will tell how the market is going to react to its successor.
“The launch of DeepSeek’s R2 model could be a pivotal moment in the AI industry. DeepSeek’s success at creating cost-effective AI models “would likely spur companies worldwide to accelerate their own efforts … breaking the stranglehold of the few dominant players in the field”.
-Vijayasimha Alilughatta, chief operating officer of Indian tech services provider Zensar.
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10. Sunlands Technology Group (NYSE:STG)
Sunlands Technology Group (NYSE:STG) provides online education services through online and mobile platforms. On February 24, the company announced that it had fully integrated DeepSeek, an advanced AI model, into its operations. Sunlands will be integrating DeepSeek’s powerful reasoning capabilities and efficient learning mechanisms to foster innovation, enable core business functions, and optimize processes in key areas such as teaching and research. The company has been progressing in AI and launched several products, including digital human instructors and AI-powered teaching assistants. The latest DeepSeek integration will allow it to enable and elevate its business with AI technology.
“The widespread application of DeepSeek will fundamentally transform the education model. On the learning front, students’ learning patterns and cognitive processes will undergo profound changes, prompting us to embrace new technologies with renewed determination. The introduction of DeepSeek’s AI model will not only provide students with more personalized, accurate, and efficient educational services but also optimize internal processes, driving sustainable growth for the business.”
-Sunlands Management
9. Nixxy, Inc. (NASDAQ:NIXX)
Nixxy, Inc. (NASDAQ:NIXX) operates an on-demand recruiting platform and provides online recruiting solutions. On Monday, February 24, the company announced that its subsidiary, Auralink AI, Inc. has entered into a twelve-month contract with Mexedia SpA, an Italian-based technology and communications provider. Auralink Al will be offering Mexedia SMS services over its newly integrated cloud-based platform, allowing carriers and operators to aggregate wholesale SMS messaging. Auralink AI has designed its system to handle up to $10 million in revenues per month for twelve calendar months, after which the agreement will be renewed unless canceled by either party with prior notice. Moreover, Auralink will be enabling its enhanced AI platform for quality billing and dynamic and price-based routing, working with multiple carriers.
“As we originally announced in 2024, executing a restructuring of the company, the overarching goal of Nixxy, is to transform traditional businesses with technology in a disruptive manner, thereby profiting from efficiencies. We will continue this expansion every quarter with the goal of additional vertical integration. This is planned to produce higher margins from existing revenues. We will enable growth by providing customers a greater suite of services at highly competitive pricing relative to the marketplace. Utilizing AI to rapidly scale revenues and profitability over the next twelve months gets us closer to our stated goal of building a billion-dollar enterprise.”
– Evan Sohn, Chairman of the Board of Directors of Nixxy.