On January 10, 2025, DeepSeek, a chat application utilizing the revolutionary DeepSeek-R1 model, made its long-anticipated debut on both iOS and Android platformsThe launch triggered an unprecedented wave of downloads, and within a mere 17 days, on January 27, DeepSeek had surpassed ChatGPT to claim the top spot in the U.SApp Store for free downloadsThis remarkable achievement underscores the technological and experiential advantages offered by DeepSeek, significantly reshaping the landscape of the global AI marketIts groundbreaking success is being hailed as a decisive moment in AI history, likened to America's "Sputnik moment," prompting a worldwide reevaluation of AI’s trajectory and potential impacts.

The emergence of DeepSeek is not merely a feat of technological wizardry but signifies the onset of a transformative era in the realm of artificial intelligenceAs it rapidly ascends in popularity, the implications for AI investment and development strategies are profoundThe competitive landscape among leading AI platforms is heating up, with a barrage of price reductions marking a pivotal shift in the AI sectorAccording to data from the China Industrial Internet Research Institute, 2024 saw cloud giants such as Byte Dance, Alibaba Cloud, and Baidu Cloud engage in fierce pricing wars, with discounts exceeding 90%. On the international front, OpenAI released GPT-4o in May, which improved performance while reducing costs dramatically by 50% compared to its predecessor, GPT-4-TurboSimilarly, Alibaba Cloud announced substantial price cuts on various large models, showcasing an industry-wide reevaluation of pricing structures.

As this climate of affordability in AI technology takes root, the market growth trajectories for AI applications around the world—including in China—are expected to accelerateIDC forecasts that the global generative AI market will reach a staggering $360.6 billion by 2024, reflecting a robust year-over-year growth of 76%, with expectations to skyrocket to $2.154 trillion by 2028. Meanwhile, China's AI software market is projected to hit $5.7 billion in 2024, with forecasts suggesting a climb to $35.4 billion by 2028.

One of the most striking developments in this landscape is the significant reduction in edge inference costs

Advertisements

As AI capabilities become increasingly embedded into consumer devices, innovation in products like AI smartphones and AI personal computing devices is expected to surge over the next few yearsThe marriage of enhanced computational prowess with robust communication capabilities will render AI functionalities ever more complexThis complexity is likely to generate a demand for new, lightweight components designed to support greater functionalities, resulting in an increase in the number of parts as well as power consumption that may necessitate larger battery capacities, thereby driving advancements in PCB developments towards thinner, more compact, and high-frequency designs.

Moreover, AI glasses appear poised to emerge as leading hardware products capable of hosting an array of AI applicationsWith significant competition from established computer manufacturers and emerging startups, many players are now diving into the augmented reality (AR) and AI glasses sectorThe recent CES 2025 showcased an impressive 47 different AI and AR glasses, highlighting features like photography, AR displays, voice interaction, and translation capabilitiesAnalysts at Wellsenn predict that by 2025, the global market for smart AI glasses will witness a flurry of new product launches, with estimated shipments reaching 4 million pairs, and projections suggesting a leap to 80 million pairs by 2030.

The year 2024 also marks a dramatic surge in AI headphone shipments in China, ushering in a new era for AI-enabled audio devicesAs AI progresses from niche to mainstream, Chinese manufacturers are prioritizing the integration of AI functionalities such as active noise cancellation and spatial audio into their productsNotably, products from companies like OWS—focused on specific AI capabilities—are leading the charge in this emerging marketData from Loto Technology reveals that by August 2024, AI headphones accounted for 1.4% of total sales, translating into a staggering year-on-year sales increase of 763% and a revenue growth of 1447%. This explosive growth indicates that AI headphones are entering a new developmental phase, setting a precedent for what’s to come.

Another remarkable development is the significant involvement of the three major telecommunications operators in China, all of whom have integrated the DeepSeek model into their systems

Advertisements

Advertisements

Advertisements

Advertisements