DeepSeek sets up shop in Hong Kong

Staff reporter and Bloomberg

Chinese artificial intelligence startup DeepSeek has established two private firms in Hong Kong after its AI assistant became one of the top three free applications on Apple's App Store in the United States.

The two companies - DeepSeek Limited and DeepSeek (HK) Limited - were registered in Hong Kong on February 5, Cailianpress reported.

Terence Chong Tai-leung, executive director of the Lau Chor Tak Institute of Global Economics and Finance at Chinese University, said DeepSeek's expansion into Hong Kong will promote the city's fintech development.

He added the company could benefit the local initial public offering market if it considers a Hong Kong listing.

Hong Kong may see more investments from India and Europe alongside an influx of fintech talent if technology from China's AI star can be applied by local financial institutions, such as those in quantitative investment, Chong said.

DeepSeek's expansion will benefit the company itself as Hong Kong's open internet helps enterprises that are using data from more districts to train large models.

He believes DeepSeek's expansion plan also depends on the city's recent promotion of the innovation and technology sector, including reserving space for science and technology parks in the Northern Metropolis area.

Meanwhile, the tech firm has successfully registered several trademarks for the DeepSeek brand, with international classifications that include social law, design research, and scientific instruments, according to Cailianpress.

The report also noted that DeepSeek, just 20 days after its launch, has amassed 20 million daily active users, making it the fastest-growing company globally in terms of DAUs.

In recent weeks, global tech leaders have announced the adoption of DeepSeek's AI models or partnerships with the startup, including Microsoft, Nvidia, Huawei, Tencent (0700), Alibaba (9988), Baidu (9888), JD.com (9618), Leveno (0992), China Unicom (0762).

However, several governments announced bans on using DeepSeek's models, citing security concerns, with South Korea being the latest to restrict defense, foreign and trade officials' access to the startup's AI services on government computers, according to reports.

Meanwhile, legendary short seller Jim Chanos says no one can see the biggest risks facing US markets over the next six to 12 months - because the challenges are going to be unpredictable events, like last month's DeepSeek collapse that wiped out roughly US$1 trillion (HK$7.8 trillion) in market value from US stocks.