Investing.com – China’s leading Internet stocks such as Tencent Holdings Ltd (HK :), Alibaba (NYSE:) Grupa Holding Ltd (hk:), i Baidu (NASDAQ:) Inc (HK:) experienced significant gains, driven by speculation about progress from AI Startup Deepseek.
The recent release of Deepseek’s open source reasoning model, DeepSeek-R1, has been recognized for rivaling OpenAi’s chatgpt in several performance benchmarks.
This achievement is particularly notable given the company’s use of less advanced chips, highlighting the challenges of US export margins in impeding China’s AI advances.
It has also attracted attention for achieving comparable performance to established AI systems such as Openai’s GPT model and Meta’s LLAMA, while operating at a fraction of their cost.
Investors are optimistic that these developments will boost the AI capabilities of China’s major tech companies.
Companies like Tencent, Alibaba and Baidu are expected to integrate or collaborate with innovative AI solutions from startups like Deepseek, improving their competitive advantage in the global market.
Tencent shares in Hong Kong rose 1.3% to HK$395.60, while Alibaba shares jumped 3.5% to HK$87.70 as of 04:00 GMT on Monday.
Baidu shares were 4.2% higher at HK$84.95, while Meituan (HK 🙂 shares rose 1.5%.
China’s growing capability in the AI field has influenced positive investor sentiment toward China’s major Internet companies.
