China-based artificial intelligence company DeepSeek is putting its plans to produce its own AI chips into action. Seen as one of OpenAI’s biggest competitors, the company has launched a massive recruitment campaign to build its own hardware infrastructure. However, it faces major challenges due to global chip embargoes on China. Details are in our news…

DeepSeek is preparing to produce its own AI chips!

DeepSeek’s plan to produce AI chips could be complicated by China’s chip bans imposed by the US. For now, SMIC, one of the most advanced manufacturers in China, lags behind US and Taiwanese manufacturers and has limited access to the latest chip manufacturing processes.

However, the company is trying to close this gap with its existing strong infrastructure. The company has 10,000 NVIDIA H800 and H100 GPUs on hand. In addition, Huawei’s Ascend AI chips are also used. DeepSeek plans to expand its team by hiring expert engineers for chip production.

Still, DeepSeek has a long way to go to compete with giant manufacturers like Taiwan’s TSMC and South Korea’s Samsung. So why does DeepSeek want to produce its own chips? There are actually several critical reasons behind the company’s move:

• Independence from US chip restrictions on China.
• Reduce supply chain dependency for AI chips.
• To produce customized hardware to run AI models more efficiently.
• In the long run, building its own AI ecosystem that can compete with companies like OpenAI and NVIDIA.

In short, DeepSeek’s chip manufacturing process is still at a very early stage, but if successful, it could greatly reduce China’s dependence on the US in AI. And that’s not a good thing for NVIDIA.

Do you think DeepSeek can succeed in making its own chips? Can China really be independent in AI? You can write your opinions in the comments section below…