Why DeepSeek has global businesses rethinking their cloud strategy

DeepSeek is fundamentally reshaping global power dynamics, the stock market, and—perhaps less discussed—cloud infrastructure. Its open-weight models are challenging traditional assumptions about the relationship between AI capability, cost, and infrastructure requirements.

To understand how DeepSeek will impact cloud infrastructure decisions in 2025 and beyond, we spoke with Imran Sheikh, Head of Unit - Artificial Intelligence at Abu Dhabi Media.

Cloud strategy shift: "DeepSeek's entrance into AI has major implications for cloud infrastructure, cost efficiency, and data privacy," Sheikh explains. "Its open-weight models allow businesses to self-host AI solutions, reducing reliance on expensive proprietary APIs while maintaining greater control over data security. This shift is crucial for industries with strict compliance requirements, such as finance and healthcare, where keeping AI workloads on-premise or within private cloud environments is becoming a priority."

Performance trade-offs: "For cloud providers and enterprises, the key focus should be on cost versus performance trade-offs," Sheikh notes. "The critical question is whether DeepSeek's models can offer competitive efficiency compared to closed alternatives."

Deployment flexibility: The impact extends beyond cost considerations. "As AI adoption expands, hybrid cloud and edge AI solutions will gain traction, enabling businesses to deploy models flexibly across Oracle, Azure, AWS, Google Cloud, private data centers, and on-device applications," Sheikh predicts. "How companies integrate DeepSeek's models could signal a broader shift toward privacy-first, cost-effective AI solutions in cloud ecosystems."

Energy and cost dynamics: The implications for resource management are significant. "DeepSeek's entry is reshaping discussions on cost, energy efficiency, and privacy," Sheikh observes. "By offering open-weight models, it lowers barriers for businesses and researchers, reducing reliance on expensive proprietary AI solutions. If DeepSeek optimizes its models for lower energy consumption, it may accelerate the industry's push toward sustainable AI, addressing concerns about large-scale model training's environmental impact."

Privacy considerations: "Privacy is a crucial factor," Sheikh emphasizes. "DeepSeek's open approach enables organizations to self-host AI, mitigating risks associated with cloud-based models, including data leaks and regulatory concerns. This aligns with the growing trend of sovereign AI, where organizations seek greater control over their infrastructure. If DeepSeek can match the performance of leading proprietary models, it could accelerate the shift toward cost-efficient, energy-conscious, and privacy-centric AI solutions, challenging industry incumbents."