Chinese AI Startup Deepseek's Strategic Focus on Domestic Market

The article discusses Beijing-based AI startup Deepseek’s strategic positioning and its founder’s stance on global competition. Wang Dawei, Deepseek’s founder, explicitly stated that the company isn’t aiming to compete with major AI players like Google, OpenAI, or Anthropic in 2025. Instead, Deepseek is focusing primarily on serving the Chinese market, which Wang believes has unique needs and opportunities. The company has developed large language models comparable to GPT-4, including Deepseek-7B and Deepseek-67B, and recently secured $500 million in funding. Wang emphasizes that while Western AI companies focus on general-purpose AI, Deepseek is targeting specific Chinese market applications, particularly in manufacturing and industrial sectors. The article highlights how this approach aligns with China’s push for technological self-reliance and the development of domestic AI capabilities. Deepseek’s strategy reflects a broader trend among Chinese tech companies to prioritize domestic market opportunities over international expansion. The company’s focus on industrial applications and manufacturing optimization suggests a practical approach to AI development that caters to China’s economic priorities. The article also notes that this positioning helps Deepseek avoid direct competition with Western AI giants while building strong foundations in its home market, where it can leverage local advantages and better understand customer needs.

Source: https://www.businessinsider.com/beijing-deepseek-not-meant-compete-google-openai-anthropic-2025-2