DeepSeek Develops AI Chip
Chinese startup DeepSeek is creating its own AI chip to reduce reliance on Nvidia and Huawei, marking a strategic shift for the company.
Key points
- DeepSeek, a Chinese AI startup, is developing its own AI chip for inference, designed to generate responses for users.
- The move could reduce DeepSeek's reliance on Nvidia and Huawei chips, which it currently uses to train and run its models.
- If successful, DeepSeek's expansion into semiconductor development could pose a challenge to Chinese tech giant Huawei.
- Shares of US-based Nvidia slipped 1.6% in premarket trading following the news.
- Analyst Richard Windsor of Radio Free Mobile stated that DeepSeek has limited chances of selling its silicon outside of China without access to leading-edge manufacturing.
DeepSeek, a Chinese AI startup, is developing its own AI chip, according to sources familiar with the matter. This move marks a significant strategic shift for the company, which has largely focused on AI model breakthroughs rather than commercializing its technology. The chip is designed for inference, the stage of AI computing where a trained model generates responses for users.
The development of its own AI chip could reduce DeepSeek's reliance on Nvidia and Huawei chips, which it currently uses to train and run its models. This is particularly notable given the US ban on exports of Nvidia's most advanced chips to China, which has helped Huawei gain around half of the $50 billion domestic AI chip market.
The news has already had an impact on the market, with shares of US-based Nvidia slipping 1.6% in premarket trading. However, analyst Richard Windsor of Radio Free Mobile downplayed the significance of the development, stating that DeepSeek has limited chances of selling its silicon outside of China without access to leading-edge manufacturing.
DeepSeek's rise to global fame began over a year ago with the release of two highly efficient AI models that went viral worldwide, surprising many in Silicon Valley and Washington. The company's decision to develop its own AI chip is seen as a major expansion of its capabilities and a potential challenge to established players in the market.
Sources
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