China’s AI Breakthrough: DeepSeek Sparks a New Sputnik Moment

DeepSeek’s AI Leap Marks China’s ‘Sputnik Moment,’ Says Deutsche Bank

The launch of DeepSeek has sent shockwaves through global markets, challenging the notion that China’s technological rise could be contained. According to Deutsche Bank, the AI breakthrough represents China’s “Sputnik moment”, a reference to the Soviet Union’s historic satellite launch in 1957 that reshaped global perceptions of its capabilities.

In its report, “China Eats the World”, the bank predicts that 2025 will be the year the investing world acknowledges China’s technological dominance, particularly in AI and high-value industries. The Hang Seng Tech Index has already surged over 10% in two weeks, driven by a rally in major Chinese tech stocks such as Tencent, Alibaba, and Xiaomi. Meanwhile, US tech stocks, particularly on the Nasdaq, have experienced a decline.

DeepSeek, founded in Hangzhou by Liang Wenfeng in 2023, is not publicly traded, but its rapid rise has boosted investor confidence in China’s tech sector. The bank downplayed concerns over US-China tensions and economic slowdowns, arguing that even tariffs could have manageable effects.

As China’s global market share continues to expand, DeepSeek’s AI breakthrough could signal a shift in global AI leadership, making China an undeniable force in the industry.