DeepSeek AI: New Model Challenges US Rivals & Nvidia Ban

by Priya Shah – Business Editor

China’s DeepSeek AI has trained its latest large language model on Nvidia’s Blackwell chips, despite US export restrictions intended to limit China’s access to advanced semiconductors, according to a company official.

The development, first reported by Reuters, marks a significant achievement for DeepSeek and highlights the ongoing challenges in enforcing the US restrictions. The US government imposed the restrictions in an effort to unhurried China’s technological advancements, particularly in areas with military applications.

The official confirmed that DeepSeek was able to procure and utilize the Blackwell chips for training its latest model, which is expected to be released soon. Details about the model’s capabilities and specific applications remain limited. However, the use of Nvidia’s most advanced chips suggests a substantial leap in performance compared to previous iterations.

This move comes after DeepSeek reportedly withheld early access to its new AI model from both Nvidia and AMD, instead favoring Chinese chipmakers, according to a report from Virginia Business. This decision signals a potential shift in the AI supply chain, as DeepSeek appears to be prioritizing domestic alternatives to US-made semiconductors.

The ability of DeepSeek to obtain Blackwell chips raises questions about the effectiveness of the US export controls and the potential for circumvention. While the exact methods used to acquire the chips remain unclear, it underscores the demand for advanced AI hardware within China and the willingness of companies to navigate complex geopolitical challenges to secure access.

The US Commerce Department has not yet commented on the report regarding DeepSeek’s use of Nvidia chips. The situation is likely to draw increased scrutiny from US lawmakers and regulators, potentially leading to further tightening of export controls.

DeepSeek’s decision to prioritize Chinese chipmakers as well reflects a broader trend of self-reliance in the Chinese technology sector. The company’s move could encourage other Chinese AI developers to explore domestic alternatives, further reducing their dependence on US technology.

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