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DeepSeek Reportedly Pursuing Development of Proprietary AI Chip

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The notion of designing tailor-made AI-crunching chips is nothing new; several major organizations—with access to big coffers—are engaged in the formulation of proprietary hardware. A new DigiTimes Asia report suggests that DeepSeek is the latest company to jump on the in-house design bandwagon. The publication's insider network believes that the open-source large language model development house has: "initiated a major recruitment drive for semiconductor design talent, signaling potential plans to develop its proprietary processors." The recent news cycle has highlighted DeepSeek's deep reliance on an NVIDIA ecosystem, despite alternative options emerging from local sources.

Industry watchdogs believe that DeepSeek has access to 10,000 of sanction-approved Team Green "Hopper" H800 AI chips, and (now banned) 10,000 H100 AI GPUs. Around late January, DeepSeek's Scale AI CEO—Alexandr Wang—claimed that the organization could utilize up to 50,000 H100 chips for model training purposes. This unsubstantiated declaration raised eyebrows; given current global political tensions. Press outlets have speculated that DeepSeek is in no rush to reveal its full deck of cards, but they appear to have a competitive volume of resources; when lined up against with Western competitors. The DigiTimes news article did not provide any detailed insight into the rumored in-house chip design. DeepSeek faces a major challenge; the Chinese semiconductor industry trails behind market leading regions. Will local foundries be able to provide an advanced enough node process for required purposes?



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