Chinese start-up DeepSeek’s multilingual capabilities and open-source nature serve as an attractive alternative for users in Southeast Asia, but its true potential can only be realised if security and legal concerns are addressed, according to analysts.
As the US and China continue their AI rivalry, businesses and governments in Southeast Asia are taking a pragmatic approach – weighing costs, performance and regulatory concerns.
While platforms such as ChatGPT and Google’s Gemini are prominent among Southeast Asian users, Chinese AI models are “steadily making inroads”, according to Ali Fazeli, chief technology officer at NexVision Lab, a technology company specialising in artificial intelligence and machine-learning solutions.
“Their multilingual capabilities, such as support for Mandarin, Bahasa Indonesia and Thai, coupled with partnerships with local tech companies, give them an edge in catering to diverse regional markets.”
But this did not necessarily translate into widespread adoption across the region, said Benjamin Ho, China programme assistant professor at the S. Rajaratnam School of International Studies (RSIS).
“China is a ready-made alternative, and for countries in Southeast Asia, having alternatives is always a good thing. In the same way, I don’t think Southeast Asians will rush to buy everything Chinese because it is cheaper, they have also got their calculations,” he said, adding that the focus ultimately hinged on which offered a better “deal”.
Since the launch of its latest AI models last month, Chinese start-up DeepSeek has snatched rival OpenAI’s coveted spot as the most-downloaded free app in the US, Australia, Canada, China, Singapore and the United Kingdom on Apple’s App Store, according to figures by market tracker App Figures.
Many tech firms in the US have been racing to adopt DeepSeek’s latest reasoning model despite increasing global scrutiny of the company, though there has not been news of the same rush happening in Southeast Asia.
The app has also sent shock waves through the tech world, with Nvidia suffering a wipeout of US$589 million in its market value last week – the highest for any stock on Wall Street.
The company claims its new AI model – R1 – offers performance comparable to OpenAI’s ChatGPT, while granting the licence for individuals to create chatbots by building upon this technology.
“The announcement of DeepSeek is a wake-up call that China is never asleep. It is a ‘more even game’ than many previously thought,” said Maria Monica Wihardja, visiting fellow and co-coordinator of the media, technology and society programme at the ISEAS-Yusof Ishak Institute.
“Despite the US’ tightening controls on access to US-origin AI technologies, it may be a little too late to control China’s AI development.”
Over the last few years, Washington has prohibited the export of high-end technologies such as GPU semiconductors to China, as part of efforts to limit Beijing’s advances in AI.
‘Long way to go’
Southeast Asia has long acknowledged China as a “technological powerhouse” prior to DeepSeek, according to Dylan Loh, an assistant professor at Nanyang Technological University’s public policy and global affairs division.
“Many countries are already dependent on China mainly for hardware technological solutions but also for software,” he pointed out.
China also has a strong partnership with many Southeast Asian countries, such as those carried out under the Digital Silk Road, a programme aimed at improving digital connectivity in developing countries, according to Associate Professor Woon Chih Yuan from the National University of Singapore (NUS).
“I think China’s ability to deliver advanced AI tools like DeepSeek will further entrench China’s digital leadership and influence in the region,” said Woon, who is researching AI and its geopolitical implications in Southeast Asia.
Fazeli, whose firm is considering adopting DeepSeek, has pointed to data privacy and security as paramount, especially for his firm, which deals with cybersecurity and threat intelligence.
“While DeepSeek demonstrates strong capabilities in data processing, its approach to handling sensitive information remains unclear,” he said, adding that other factors such as scalability and cost were also important considerations.
While he found DeepSeek a “promising product”, he urged businesses not to “rush to integrate it” just yet because many of its services were still unavailable or not as developed as its competitors.
“DeepSeek AI still has a long way to go in terms of business adoption and commercial viability before it can truly compete with OpenAI.”
Chinese AI platforms have also been able to offer tools that are more affordable and adaptable, making it more attractive for Southeast Asia, experts have said.
“Their lightweight model designs require fewer GPUs [Graphics Processing Units] and hardware resources, making them more accessible in regions with limited technological infrastructure. Many of these platforms are open-source and free, offering cost-effective solutions that appeal to budget-conscious users and organisations,” Fazeli said.
DeepSeek’s open-source system, which stands in contrast to the proprietary or closed-source system of others such as OpenAI, means it allows users to not only use it as “free technology” but also build on it, according to Wihardja.
“This is where developing countries, including those in Southeast Asia, can harness the increasing economies of scale of knowledge and science. That is, the more people use it, the greater the returns are. It is for everyone and not protected to benefit only a few businesses, developers, countries or individuals,” she added.
On security concerns, ultimately, both Western or Chinese options face the same risks, according to experts.
Wihardja said: “As far as data privacy, censorship, biases and proprietary issues are concerned, it is as secure or not secure in the hands of China-based platforms as much as it is in the hands of Western-based platforms.”
Agreeing, Ho from RSIS said: “Some industries linked to security outfits may not want to rely on DeepSeek, but I would assume that for those truly concerned about security, they wouldn’t be typing in their queries into ChatGPT either.”
However, the risk of getting caught in US-China tensions could cause some to think twice before adopting DeepSeek.
“Given the US’ pushback against DeepSeek, businesses and governments in the region would also be cautious about embracing DeepSeek as they may be afraid of being caught up with the tensions and rivalries between China and the US,” he said.
But whether DeepSeek could live up to its hype remained to be seen, Fazeli said, adding that this depended on whether it could outperform competitors with functions such as context-aware responses and industry-specific features.
He said: “Despite its early momentum, DeepSeek faces stiff competition from both local and global players. Open-source models like Meta’s Llama provide alternatives with strong developer backing, while platforms like OpenAI’s ChatGPT and Google’s Gemini dominate consumer usage.”
NUS’ Woon said it might be too early to tell if businesses, developers and governments in the region would adopt DeepSeek in daily operations.
“DeepSeek is a relatively new AI tool and there have been questions raised about its performance, its inherent ability to further develop itself into a more sophisticated and precise tool, among other things.”