---
title: "DeepSeek, through algorithm optimization and cost reduction in computing power, is expected to drive"
description: "DeepSeek, through algorithm optimization and cost reduction in computing power, is expected to drive the penetration of AI applications from centralized cloud services (to B/C internet layer) to distr"
type: "topic"
locale: "en"
url: "https://longbridge.com/en/topics/27360073.md"
published_at: "2025-02-20T03:40:25.000Z"
author: "[Dolphin Research](https://longbridge.com/en/news/dolphin.md)"
---

# DeepSeek, through algorithm optimization and cost reduction in computing power, is expected to drive

DeepSeek, through algorithm optimization and cost reduction in computing power, is expected to drive the penetration of AI applications from centralized cloud services (to B/C internet layer) to distributed terminal sides (edge). This transformation will not only stimulate the growth of demand for edge computing, edge AI chips, and sensors but also revive the traditional hardware industry chain (smartphones, PCs, analog chips, etc.).

Currently, the traditional hardware sector remains relatively sluggish. With the large-scale implementation of edge AI and the release of ecological synergy effects, the hardware supply chain is expected to undergo a valuation reshaping, thereby driving the overall hardware industry chain into an upward cycle.

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.