China's artificial intelligence landscape is rapidly evolving, particularly with the emergence of DeepSeek, a startup that has gained significant traction since its founder, Liang Wenfeng, met with President Xi Jinping last month. Following this meeting, various Chinese government officials and institutions, including courts and hospitals, have begun to adopt DeepSeek's AI technology to enhance operational efficiency. Reports indicate that DeepSeek's applications are widespread, affecting sectors from transportation to public safety. Despite this momentum, the startup, which employs 130 people and has not secured outside funding, faces increased scrutiny from the government. While DeepSeek's rise has prompted discussions on AI investment strategies in Western markets, it has yet to stimulate venture capital interest within China, where government funding remains the primary source of support for such technologies. The broader implications of DeepSeek's integration into smart governance initiatives across Chinese cities are being closely monitored as the country accelerates its AI capabilities.