DeepSeek: Chinese AI Startup Leans on Huawei Chips for Cost-Effective AI

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DeepSeek: Chinese AI Startup Leans on Huawei Chips for Cost-Effective AI
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DeepSeek, a Chinese AI startup, has garnered international attention for its AI chatbot capabilities comparable to leading American models. Notably, DeepSeek utilizes Huawei's Ascend 910C chipsets for its R1 large-language model (LLM), defying the common reliance on Nvidia's GPUs. While the 910C offers less raw processing power, its focus on inference allows DeepSeek to achieve similar results with fewer chips and potentially at lower costs. This strategic choice highlights the potential for Chinese AI companies to operate independently of Western technology.

, a Chinese AI startup made waves in the international tech scene for having capabilities of top American AI chatbots such asWhat must have sent even more chills down the American AI companies’ spines is that DeepSeek is using Huawei ’s Ascend 910C chipsets as its “brains” for its R1 large-language model , according to a leak by AI analyst,So, why did DeepSeek opt for Huawei ’s chips rather than Nvidia ’s? Is it because the former offers more processing power than the latter? Well, not at all.

However, what makes the Huawei 910C shine is that it’s made with inference in mind. This theoretically allows DeepSeek to achieve similar results with other AI chatbot competitors with fewer chipsets, and more importantly, at lower costs. DeepSeek’s choice to opt for Huawei’s chipsets rather than Nvidia’s might also be proof that Chinese AI companies like itself can operate without depending on Western-supplied components.At the end of the day, Huawei’s 910C chipsets still can’t fully replace Nvidia’s H100 in training DeepSeek’s AI models just yet. Still, DeepSeek is considering training its next-gen AI model, the DeepSeek V4 using 32,000 units of the Huawei 910C.

Huawei is also looking to compete squarely against Nvidia’s current top dog, the B200 Performance GPU, with its upcoming Ascend 920C chipset. It will be a game changer if DeepSeek is to utilise this chipset to train its future AI models at much lower costs.

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