Schneider Electric hails China’s “DeepSeek moment” as a major milestone!
According to Jean-Pascal Tricoire, head of French power equipment manufacturer Schneider Electric, China’s so-called “DeepSeek moment” is probably excellent news in the worldwide competition to create artificial intelligence models that can perform increasingly difficult tasks.
I believe it’s good news. At CONVERGE LIVE in Singapore on Wednesday, Tricoire told CNBC’s Steve Sedgwick, “We need AI at every level.”
“AI is necessary to optimize your entire business at every level, enabling you to source, acquire, consume, and make better decisions. We need models to function on a lower scale to accomplish all of this,” he continued.
According to Tricoire, the rise of the Chinese AI software DeepSeek demonstrated that using a considerably smaller model, AI models may provide outcomes comparable to those of some of their more well-known American competitors.
According to Tricoire, it “will spread AI at all levels of the architecture much faster.” He went on to say that DeepSeek’s popular R1 model would be “fantastic” for enhancing dependability and safety when applying AI to hazardous machinery.
“It’s very good news that AI models are becoming available at every level of what we need,” Tricoire stated.
His remarks follow Schneider Electric’s 2024 sales and profit reports, which set new records.
After strong demand for data centers in the fourth quarter, the company, which has benefited greatly from the artificial intelligence movement, increased its 2025 profit margin.
After rising 39% in 2023, Schneider Electric’s stock increased 33% in 2024. However, China’s current AI push has raised fears about AI investment and tech sector returns, which has caused the Paris-listed shares to drop around 7% year to date.
An essential component of the infrastructure supporting contemporary cloud computing and artificial intelligence applications are data centers, which have an ever-increasing energy consumption.
Read More: Chinese universities expand AI programs for future growth
