China's DeepSeek Using Banned Nvidia Chips To Develop Next Major Model [zero hedge]
Dell Technologies Inc. Class C (DELL)
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Source: zero hedge
China's DeepSeek Using Banned Nvidia Chips To Develop Next Major Model Chinese AI startup DeepSeek has been using 'several thousand' banned Nvidia Blackwell chips to develop its next major model, The Information reports, citing six people with knowledge of the matter. The chips in question were smuggled into China through a complex scheme that involves sending them to data centers in countries that are allowed to purchase them - then dismantling the servers and importing the components to China. Doing so allowed DeepSeek to remain competitive in the AI race, as Chinese AI chips are still not sufficient to train AI models - a process in which the models 'learn' from mountains of data. While Beijing has pushed for domestic companies to use homegrown alternatives, the Nvidia chips are currently the only ones that can get the job done. Nvidia's Blackwell, which shipped in the fourth quarter of 2024, have been used by companies including xAI, Google, Microsoft and OpenAI - which all use hu
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