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Chinese smart device manufacturers adopt DeepSeek’s AI model

  • With the integration of DeepSeek’s models, these devices are set to exhibit enhanced operational precision and comprehension, creating a more intuitive user experience.

China’s enthusiastic integration of DeepSeek, a pioneering artificial intelligence startup, marks a significant evolution in the realm of smart home appliances.

The Hangzhou-based company, known for its advanced large language models, has made substantial strides this year, rivaling Western systems in performance at a fraction of the cost.

The achievement has not only fueled national pride but also served as a testament to China’s innovative prowess, particularly amid ongoing geopolitical tensions surrounding technological advancements.

DeepSeek’s rapid ascension in the AI sector has attracted the attention of numerous domestic brands, with major players such as Haier, Hisense, and TCL Electronics announcing plans to incorporate the startup’s capabilities into their product lines.

The partnership extends beyond conventional smart devices, which typically respond to basic voice commands. With the integration of DeepSeek’s models, these devices are set to exhibit enhanced operational precision and comprehension, creating a more intuitive user experience.

The anticipated release of DeepSeek’s successor model, R2, further amplifies the excitement surrounding the company’s contributions to AI technology.

As the founder Liang Wenfeng garners recognition from Chinese authorities, it becomes evident that DeepSeek is not merely a technological advancement but a symbol of resilience against external efforts to curtail China’s tech development.

Ola Electric overhauls its distribution and inventory management systems

  • Company on track to sell over 25,000 units within the month, underscoring its ongoing leadership in the electric vehicle segment.

Ola Electric’s decision to eliminate regional warehouses across India marks a significant transformation in its operational strategy. By leveraging its extensive network of 4,000 retail stores for maintaining vehicle inventory, spare parts, accessories, and facilitating last-mile deliveries, the company aims to enhance its efficiency and profitability.

The strategic move is anticipated to improve EBITDA margins by nearly 10 percentage points, thereby reinforcing Ola Electric’s position as a leader in the electric two-wheeler market.

The redesign of Ola Electric’s distribution network reflects a comprehensive re-evaluation of inventory management and customer service. By streamlining operations, the company is poised to achieve substantial cost savings, estimated at approximately Rs30 crore per month.

Enhancing the customer experience

The renegotiation of contracts with vehicle registration agency partners further complements this initiative, aiming to expedite the registration process while minimizing expenses.

Although this transition temporarily impacted the registration numbers on the VAHAN portal in February, Ola Electric has assured stakeholders that actual sales figures remained robust.

Internal sources indicate that the company is on track to sell over 25,000 units within the month, underscoring its ongoing leadership in the electric vehicle segment.

The front-end network redesign not only eliminates an entire distribution layer but also positions retail stores as dual-function delivery points. This innovation has halved the inventory pipeline from 30 days to 15 days and reduced delivery timelines from 10 days to a mere 4-5 days, thereby significantly enhancing the customer experience.

As Ola Electric navigates this pivotal phase, its emphasis on profitability aligns with the broader trends in India’s electric vehicle market, which has experienced double-digit growth amidst rising fuel prices and increased adoption in Tier 3 and 4 markets.

Industry experts suggest that sustainable business models will ultimately dictate the long-term success of players in this burgeoning sector.

Venture capital funding in Indian startups surge to $883m in January

  • Technology sector attracts $6.50b, reflecting a remarkable year-on-year growth of 52.5%.

The venture capital (VC) funding landscape in India has witnessed a remarkable transformation, particularly highlighted by a staggering year-on-year increase of 69.7 per cent, leading to a total valuation of $883.2 million in January 2025.

The noteworthy ascent, as documented by GlobalData, is not merely a statistical anomaly; it underscores a burgeoning confidence among investors in the Indian startup ecosystem and suggests a broader trend of escalating financial engagement.

The surge in deal volume—from 93 in January 2024 to 131 in January 2025—reflects a 40.9 per cent increase. Such metrics illuminate the resilience and dynamism of Indian startups, which now account for 9.9 per cent of the total global VC deals announced during this period, with a corresponding value share of 3.6 per cent.

China experiences downfall

The robust growth trajectory, as articulated by Aurojyoti Bose, lead analyst at GlobalData, indicates that Indian startups are not only attracting a greater number of VC deals but are also securing more significant capital inflows. This outcome is emblematic of an enhanced investor confidence in the Indian market.

Furthermore, India’s standing remains formidable on the global stage, maintaining its position among the top five markets for VC funding activities in both value and volume.

Notable funding rounds in January 2025, including $121 million for Infra.Market and $109.4 million for Neuberg Diagnostics, underscore this trend.

Comparative insights reveal that while India thrives, major markets such as China experienced a downturn, with a 31.9 per cent decline in deal volume, revealing contrasting dynamics between the two nations.

Spanning from January to November 2024, India’s venture capital activity was marked by significant growth, totaling $16.77 billion across 888 deals—a 14.1 per cent increase in value and a 21.8 per cent rise in deal count compared to the same timeframe in 2023.

The technology sector emerged prominently in this landscape, attracting $6.50 billion, reflecting a remarkable year-on-year growth of 52.5 per cent.

UAE seeks to raise fintech’s contribution to GDP by 12% by 2031

  • UAE government is dedicated to creating a favourable investment environment that encourages the proliferation of new economy sectors.
  • Issues 200,000 new business licenses in 2024 and more than 1.1m businesses are currently operating in the country.

Abdullah bin Touq Al Marri, the UAE Minister of Economy, highlighted that Fintech currently contributes 8.7 per cent to the UAE’s Gross Domestic Product (GDP). This figure not only illustrates the sector’s significant impact but also reflects the UAE’s strategic commitment to fostering an environment conducive to innovation and economic diversification.

The Minister’s remarks during the Investopia 2025 event in Abu Dhabi reveal an ambitious vision for the future of Fintech in the UAE. With a target to increase its contribution to approximately 12 per cent of GDP by 2031, the UAE is positioning itself as a leader in this dynamic sector.

Quest for growth

Fintech is not merely a standalone industry; it is intricately linked to sustainable growth across various economic sectors. By enhancing financial services, improving access to capital, and facilitating transactions, Fintech bolsters the overall economic framework, thereby supporting other industries in their quest for growth and efficiency.

Moreover, the UAE government is dedicated to creating a favourable investment environment that encourages the proliferation of new economy sectors, including the burgeoning space economy. This commitment is indicative of a broader strategic initiative aimed at diversifying the national economy and reducing reliance on traditional oil revenues.

By fostering innovation and attracting investment in these emerging sectors, the UAE seeks to enhance its global standing, particularly in areas that promise substantial growth potential.

In addition to Fintech and the space economy, the agricultural innovation sector has emerged as another promising area for development in the UAE. Al Marri emphasised the importance of a clear food security strategy, which aims to diversify food sources and enhance the nation’s status as a global hub for food exports.

Pressing issue of food security

This strategy not only addresses the pressing issue of food security but also serves as a catalyst for attracting investments and localising technology within the agricultural sector. Such initiatives are crucial for ensuring sustainability and resilience in the face of global challenges.

The Minister’s announcement regarding the issuance of 200,000 new business licenses in 2024 reflects the UAE’s robust entrepreneurial spirit and its commitment to fostering a vibrant business ecosystem.

With over 1.1 million businesses currently operating in the country, the Ministry of Economy is focused on increasing this number, thereby creating more opportunities for innovation and economic growth. This proactive approach is essential for maintaining the UAE’s competitive edge in an increasingly interconnected global economy.

DeepSeek introduces discounted off-peak pricing for developers

  • The pricing structure not only enhances accessibility for developers but also raises the stakes for competitors who may now feel compelled to lower their prices to maintain market share.

AI startup DeepSeek unveiled a strategic pricing initiative aimed at developers seeking to leverage its advanced AI models for product development.

By introducing discounted off-peak pricing, the company has positioned itself as a formidable competitor in the burgeoning AI market, potentially exerting significant pressure on both domestic and international rivals to reconsider their pricing strategies.

DeepSeek’s announcement comes on the heels of a notable sell-off in global equity markets, a reaction largely attributed to investor concerns regarding the implications of DeepSeek’s entry into the competitive landscape dominated by established players.

The Hangzhou-based firm has set a precedent with its aggressive pricing model, offering substantial discounts of up to 75 per cent during designated off-peak hours.

This pricing structure not only enhances accessibility for developers but also raises the stakes for competitors who may now feel compelled to lower their prices to maintain market share.

The timing of DeepSeek’s off-peak pricing, which spans from 1630 GMT to 0030 GMT, is particularly strategic as it coincides with daytime hours in Europe and the United States.

Broadening the user base

This alignment allows developers in these regions to capitalise on the reduced costs, thereby broadening the potential user base for DeepSeek’s API.

The ramifications of this pricing strategy are already evident, as it has prompted reactions from industry giants, including OpenAI and Google, both of whom have recently adjusted their pricing tiers in response to the competitive threat posed by DeepSeek.

The company’s emphasis on an open-source ethos and affordable pricing has not only catalysed a domestic price war since the release of its V2 model last May but has also initiated a broader reevaluation of pricing structures across the global AI landscape.

As DeepSeek accelerates the launch of its successor to the R1 model, the potential for further disruption looms large.

IDC revises PC growth to 273m units in 2025

  • As organisations seek to refresh their technology in response to the impending end of support for Windows 10, the demand for new PCs is expected to remain robust.
  • Anticipated stagnation in growth beyond 2025, with projections indicating sub one per cent annual increases through 2029, underscores the complexities of the current market landscape, influenced by a myriad of economic factors.
  • IDC forecasts a 0.8% decline in tablet shipments in 2025.

In recent years, the global traditional PC market has faced a confluence of challenges that have led to a downward revision in growth forecasts. The International Data Corporation (IDC) has recently adjusted its predictions for the traditional PC market, anticipating a global volume of 273 million units in 2025.

This figure represents a modest growth of 3.7 per cent from the previous year but signifies a decline from earlier forecasts. The anticipated stagnation in growth beyond 2025, with projections indicating sub one per cent annual increases through 2029, underscores the complexities of the current market landscape, influenced by a myriad of economic factors.

The imposition of tariffs on Chinese goods by the United States has had a profound impact on the pricing dynamics of PCs.

As Jitesh Ubrani, a research manager at IDC, aptly noted, “Price hikes stemming from tariffs in the US combined with subdued demand are leading to a negative impact within the largest market for PCs.”

This sentiment is echoed across various consumer segments, which are grappling with a pervasive sense of economic uncertainty. The weakening market sentiment, particularly in consumer spending, has contributed to IDC’s forecast of a 0.8 per cent decline in tablet shipments in 2025, further illustrating the challenges faced by the broader consumer electronics market.

Commercial segment to drive growth

Despite these hurdles, there are identifiable areas of resilience within the traditional PC sector. The commercial segment, including education-related PCs, is poised to be a significant driver of growth in 2025.

IDC reported a 2 per cent increase in commercial PC volume in 2024, fueled by substantial procurement deals and a gradual migration to Windows 11. As organisations seek to refresh their technology in response to the impending end of support for Windows 10, the demand for new PCs is expected to remain robust.

This trend is particularly evident in markets such as Japan, where enterprises and small to medium-sized businesses (SMBs) are proactively replacing aging systems.

Moreover, the anticipated emergence of a more robust ecosystem for artificial intelligence (AI) PCs by late 2025 presents an exciting opportunity for the market.

Although initial AI PC purchases have encountered obstacles, IDC expects that by 2026, most new PCs will be equipped with generative AI capabilities. This technological advancement could catalyse renewed interest and investment in the PC market, particularly among commercial users seeking to leverage AI for productivity gains.