1、DeepSeek Impact and Asian Tech View TechnologyGokul Hariharan AC(852)2800-Bloomberg JPMA HARIHARAN J.P.Morgan Securities(Asia Pacific)Limited/J.P.Morgan Broking(Hong Kong)LimitedSee the end pages of this presentation for analyst certification and important disclosures,including non-US analyst disclo

2、sures.J.P.Morgan does and seeks to do business with companies covered in its research reports.As a result,investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.Investors should consider this report as only a single factor in making t

3、heir investment decision.Asia Pacific Equity ResearchFeb This material is neither intended to be distributed to Mainland China investors nor to provide securities investment consultancy services within the territory of Mainland China.This material or any portion hereof may not be reprinted,sold or r

4、edistributed without the written consent of J.P.Morgan.2DeepSeek-What does it do?Started in late-2023 by Liang WenFeng(co-founder of quantitative hedge fund High-Flyer),DeepSeek is focused on building AGIDeepSeek-V1/V2/V3 LLMs launched in Jan/May/Dec-24,but market focus rose with launch of DeepSeek-

5、R1 on 22nd Jan-25 due to:Comparable performance vs.OpenAI-o1-1217 on multiple reasoning tests Much lower Inference pricing at$0.55/$15.0(input tokens)and$2.19/$60.0(output tokens)for DeepSeek R1/OpenAI-o1Much lower training costs for V3 at$5.6mn,although requires more validationMuch lower compute po

6、wer requirement with limited cluster of H800s,although requires more validation Use of multi-token prediction,multi-head latent attention(MLA),reducing the size of the Key Value cache and Mixture of Experts innovationsPositive consumer traction with DeepSeek app securing the top position on the Appl