Chinese tech giants began shifting their AI development set-ups to mimic DeepSeek’s low-cost large language model, spurring a surge in demand for US-based Nvidia’s AI chips designed for the nation, Reuters reported.
The news agency stated Tencent, Alibaba and ByteDance significantly increased orders for Nvidia’s H20 chips, which are not covered by US export licensing rules.
Nvidia reconfigured its high-end offerings for China following US export controls on AI chips introduced in October 2023. The H20 is its top-end chip available in the country.
The US government is mulling fresh restrictions on exports of chips including the H20 and forcing companies in Japan and the Netherlands to back the expanded curbs.
DeepSeek jolted the international AI industry after launching its R1 model, which reportedly was developed at a fraction of the typical cost, using less-advanced chips compared with big name US counterparts.
Source: Mobile World Live
