Top Lenovo executive on DeepSeek moment: ‘It’s good for the industry’

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Ivan Cheung, Vice-President & Chief Operating Officer, Asia Pacific, Lenovo (AP). (Image credit: Anuj Bhatia/The Indian Express)As Lenovo becomes the latest company to lend support to DeepSeek’s recent AI system, a top executive’s comments show how the Chinese startup’s innovative approach mirrors how the tech industry at large views the adoption of its models going forward.In an interview with indianexpress.com Wednesday, Ivan Cheung, Vice President & Chief Operating Officer, Asia Pacific, Lenovo (AP) said, “The innovation is good for the industry; the cost of the LLM model will drop significantly. I believe that, even for OpenAI, as they move to this latest generation, costs have already decreased substantially, and they will continue to fall in the future. This reduces both the cost and the time required for AI training, which I think is definitely good news. Smaller companies that cannot invest 100 million or 200 million can now join this journey”.During an investor call with analysts last week after the third-quarter results announcement, Lenovo CEO Yang Yuanqing said DeepSeek “has had a very positive impact on Lenovo. It further proves … that we have been on the right path by deploying distilled small models for local devices.”Lenovo recently announced that it would integrate DeepSeek’s model into its AI assistant, called Xiaotian. A visitor tries out a Lenovo Yoga AI notebook at an event in Japan on Wednesday. ( Image credit: Anuj Bhatia/Indian Express)Earlier this year, DeepSeek said it had created an AI system capable of matching leading AI products made in the US. The news shocked the tech industry. DeepSeek claimed it built its new AI technology more cost-effectively and with older computer chips than its American competitors, challenging an industry that had come to believe that larger and more advanced AI would cost billions of dollars.Also read | Lenovo plans to manufacture ‘AI PCs’ in India amid diversification driveHowever, what changed perceptions was DeepSeek’s innovative technique of using parts of that technology as well as other AI tools freely available on the internet, through a software development method called open source.Analysts view Lenovo as a major company poised to benefit from DeepSeek’s AI models, as the PC giant continues to invest heavily in AI PCs and expand its AI servers and services business. The world’s largest PC maker posted sales of nearly $18.8 billion for the quarter ending on December 31, marking the third consecutive quarter of double-digit growth, as demand for key AI infrastructure remains robust.Story continues below this ad“The AI PCs will make up more than 70 per cent of the market in the next two years. As the technology continues to evolve rapidly and the cost to CPU vendors decreases, adoption will move very quickly,” Cheung said, adding that as AI PC sales grow, the market will also start seeing more AI apps because developing them will become cheaper.Cheung said Lenovo is seeing a larger uptake of AI PCs in the consumer space compared to the enterprise sector, with markets like Japan, Australia, and Singapore being early adopters, while India is picking up quickly.“Initially, the price range is at the highest level, but it will keep moving down to mainstream CPUs and different entry-level CPUs. We believe it will pick up very fast. However, not every user uses AI capabilities. We expect that AI PCs will reach up to 50 per cent of consumers in the Asia Pacific region,” he added.Anuj Bhatia is a personal technology writer at indianexpress.com who has spent a decade covering gadgets, apps, and gaming. He specialises in writing longer-form feature articles and explainers on trending tech topics. His unique interests encompass delving into vintage tech and composing in-depth narratives on the intersection of history, technology, and popular culture. Prior to joining The Indian Express in late 2016, he served as a senior tech writer at My Mobile magazine and previously held roles as a reviewer and tech writer at Gizbot. Anuj holds a postgraduate degree from Banaras Hindu University. You can find Anuj on Linkedin. Email: anuj.bhatia@indianexpress.com ... Read More© IE Online Media Services Pvt LtdTags:artificial intelligenceLenovo