On January 20th, the AI landscape witnessed a significant upheaval with the simultaneous launch of two groundbreaking multimodal thinking models: DeepSeek-R1 by DeepSeek and Kimi K1.5 by the startup Moon's Dark SideWhile these models share similar technical paths, their subsequent journeys took disparate directionsOpenAI later remarked that both companies independently uncovered the secret behind their o1 inference models, marking a noteworthy event in the realm of artificial intelligence.

However, results tell different storiesDeepSeek rose to prominence, garnering global attention and reshaping the AI landscape, while Kimi faded into the background, lacking the impact expected after such a launchWho could have predicted that a hedge fund-backed AI model, devoid of any advertising, could outshine established giants like OpenAI in just a month? Indeed, social media erupted with claims that DeepSeek had 'short-sold the United States'.

The impact of DeepSeek is strikingly illustrated by data collected from various sourcesOver the past month, metrics from WeChat reveal that the average index value for DeepSeek reached a staggering 590 million, with peaks nearing one billionIn contrast, Kimi managed a mere 21 million, and the other competitor, Doubao, registered around 30 millionThese figures have drawn a definitive line between the emerging victor, DeepSeek, and its competitors, with many claiming the internet has transitioned from an "All in AI" focus to an "All in DeepSeek" mentality.

Now, just one month after the debut of DeepSeek-R1, a critical question arises: what has become of Doubao, Kimi, and other players in the landscape post-launch? Two camps have emerged from this dichotomy—those who embrace DeepSeek and those who strive for independence and self-reliance.

The embracing faction is epitomized by industry giants like TencentFollowing the unveiling of DeepSeek's capabilities, many major tech firms, including Tencent, began to adapt and integrate the model into their existing systems

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Tencent confirmed on February 16th that its popular WeChat application would implement AI-driven search functions powered by DeepSeek-R1, marking a significant step in the evolution of their offerings.

Tencent's personalized application, Yuanbao, was updated on February 13th to incorporate DeepSeek, while the company's self-developed model, HunyuanT1, entered gray testing shortly afterThis willingness to adopt provided Tencent with a critical edge in a landscape now dominated by DeepSeek's prowess.

Ad spending illustrated this shift; between February 1st and February 14th, spending remained relatively modest with an average of around 2,000 materials dailyHowever, from February 15th onward, spending soared, peaking at over 6,570 materials on February 18th—a significant increase aimed at maximizing the impact of the recently integrated models.

In spite of what could be perceived as ceding control to DeepSeek, Tencent has actively assimilated the model across a multitude of applications, including WeChat, QQ Browser, QQ Music, and Tencent MapsAs reported by research tech firm DataEye, this strategy reflects Tencent's broader ambitions to leverage both its internal model and external partners to create blockbuster applications in the AI era.

Baidu has similarly opted to embrace DeepSeekOn the evening of February 16th, the company announced a comprehensive integration of DeepSeek alongside its own advanced Wenxin modelHowever, this integration has been somewhat limited as Baidu's AI assistant application, Wen Xiaoyan, has only achieved optimization in its photo-answering capabilities using DeepSeek-R1. The full interplay between these models remains to be seen, though the alignment with DeepSeek is evident throughout both companies’ trajectories.

Within the cohort known as the 'AI Six Dragons,' companies like JiaYueXingChe and MiniMax have also begun to integrate DeepSeek's capabilities into their own frameworks, further crystallizing the influence of DeepSeek across the landscape

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The integration of these advanced models portends a shift in user experience and search methods, reorienting the way many individuals interact with AI-powered tools.

Conversely, the independent faction, represented by companies like ByteDance and its AI assistant Doubao, has markedly different ambitionsUnlike Tencent, which is eager to leverage DeepSeek, ByteDance adopts a more reserved approachDespite being the leading player in the domestic AI assistant scene prior to DeepSeek’s emergence, reports indicate that Doubao has shown little inclination to integrate with its rival.

As records show, ByteDance’s portfolio boasts limited adoption of DeepSeek, with only FlyBook and its peripheral services officially announcing partnershipsDoubao's performance has seen a downward trend following DeepSeek's ascent, confirming fears that its earlier dominance may dissipate without a timely strategic adjustment.

Kimi, another player in this ecosystem, has also faced scrutinyDespite launching the Kimi K1.5 model simultaneously with DeepSeek-R1, it has not secured its place firmly against DeepSeek’s momentumPrevious marketing tactics have drawn critiques, as Kimi relied heavily on aggressive ad spending rather than technological innovation.

As Kimi’s user base struggles to compete with Doubao in a landscape reshaped by DeepSeek’s emerging dominance, shifts in internal policy reflect a newfound resolve to focus on foundational models and pragmatic application reductionsThe critical assessment led to Kimi’s decision to scale back significant advertising investments, marking a departure from previous strategies that were seen as reliant on sheer marketing power.

This profound transformation themes a pervasive reflection throughout the industryDeepSeek’s emergence has challenged existing AI paradigms, prompting leaders within established firms to reevaluate their paths forwardByteDance's CEO, Liang Rubo, acknowledged the incremental shifts with an eye toward innovating quickly to catch up with competitors like DeepSeek

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