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China’s 2025 cloud spending to grow 15% on the back of DeepSeek adoption

  • Chinese AI startup DeepSeek achieved success by revealing a powerful AI model at a low cost, prompting rapid innovation from other Chinese firms.
  • The U.S. Department of Commerce blacklisted over 80 Chinese companies to curb potential security threats from advanced AI technologies.
  • Following DeepSeek's rise, tensions between Washington and Beijing have escalated as the U.S. Aims to restrict China's access to high-performance computing and AI.
  • Experts predict that the emergence of low-cost AI models from China will challenge established U.S. Tech companies and lead to increased margin compression.
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Bloomberg broke the news in United States on Tuesday, March 25, 2025.
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