Chinese tech companies are showing optimism about their AI startups, particularly with the success of DeepSeek's R1 chatbot, which competes effectively with Western counterparts at significantly lower costs.

Industry experts believe that DeepSeek's emergence will have a substantial impact on the generative AI market, promoting further growth in the coming years.

The development of DeepSeek has shifted perceptions regarding China's capability to create large AI models that can rival those developed in the United States.

DeepSeek's software is gaining traction among various companies, as demonstrated at a recent conference, indicating strong industry support.

Experts believe that the availability of DeepSeek's R1 model will lead to significant advancements in industries related to large language models, a critical area in AI innovation.

DeepSeek, based in Hangzhou, has attracted considerable attention for its capabilities, even as it faces bans and restrictions from countries like South Korea, Italy, Australia, and some US states due to privacy concerns.

The impact of DeepSeek is being compared to the launch of Android in 2008, suggesting it could similarly revolutionize the generative AI market.

At the Global AI Developers' Conference in Shanghai, exhibitors showcased their use of DeepSeek's open-source software, reflecting its significant influence on the industry.

Despite foreign scrutiny, exhibitors at the conference expressed confidence in China's advancements in AI technology.

US President Donald Trump described the launch of DeepSeek as a 'wake-up call' for American tech firms, highlighting the R1 app's development cost of $5.6 million compared to a $500 billion initiative he sponsored.

The conference also featured humanoid robots, including one that performed on a major state television program during the Lunar New Year celebrations, showcasing the innovation in AI technology.