Core Viewpoint - The rise of DeepSeek is reshaping the AI industry in China, prompting startups to adjust their strategies towards application-focused development rather than foundational model training [1][2]. Group 1: Strategic Adjustments of Chinese AI Startups - Startups like Kimi, Zero One Universe, Baichuan Intelligence, and Zhipu AI are shifting resources towards application development and reducing spending [1][3]. - Zero One Universe, founded by former Google China head Kai-Fu Lee, has ceased pre-training of its models and is now focusing on selling customized AI solutions based on DeepSeek [4]. - Kimi is cutting marketing expenses to enhance model training and replicate DeepSeek's success, while also exploring monetization through user engagement [5]. - Baichuan Intelligence is concentrating on healthcare applications, specifically developing AI tools to assist in diagnostics for hospitals [5]. Group 2: Company Performance and Financials - Zhipu AI is attempting to establish its enterprise sales business, reporting a revenue of 300 million RMB (approximately 41 million USD) in 2024, with a loss of 2 billion RMB [6]. - Zhipu AI has around 800 employees, making it the largest LLM startup in terms of workforce, compared to DeepSeek's approximately 160 employees [6]. - There are indications that Zhipu AI aims for an IPO by the end of the year, but the development of DeepSeek may impact this goal [6].