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FriedButter

FriedButter

Colonel
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Nvidia says DeepSeek advances prove need for more of its chips​

SAN FRANCISCO, Jan 27 (Reuters) - Nvidia (NVDA.O), opens new tab on Monday said Chinese AI firm DeepSeek's advances show the usefulness of its chips for the Chinese market and that more of its chips will be needed in the future to meet demand for DeepSeek's services.

Nvidia issued a statement on Monday after its shares tumbled 17% on investor concerns that China's DeepSeek had matched rivals such as OpenAI using far fewer Nvidia chips than U.S. firms.

"DeepSeek’s work illustrates how new models can be created using that technique, leveraging widely-available models and compute that is fully export control compliant," Nvidia said in its statement.

One of DeepSeek's research paper's showed that it had used about 2,000 of Nvidia's H800 chips, which were designed to comply with U.S. export controls released in 2022 but which experts told Reuters would barely slow China's AI progress.

The U.S. microchip export controls were designed to freeze China's development of supercomputers used to develop nuclear weapons and artificial intelligence systems.
Jimmy Goodrich, a senior adviser to the RAND Corp for technology analysis, said there are at least a dozen major supercomputers in China with significant numbers of Nvidia chips that were legal for purchase at the time that DeepSeek used to learn how to become more efficient.

Computing efficiency has also been a major focus of U.S. AI firms.

"DeepSeek didn't come out of nowhere - they've been at model building for years," Goodrich said. "It's been long known that DeepSeek has a really good team, and if they had access to even more compute, God knows how capable they would be."
DeepSeek was struggling on Monday to accommodate an influx of new users. Servicing new users is a process that AI firms call "inference," which Nvidia said demonstrated that its chips will remain in demand.

"Inference requires significant numbers of Nvidia GPUs and high-performance networking," Nvidia said in its statement.
Nvidia is currently selling a chip called the H20 that is designed to meet the most recent export control regulations. While the restrictions limit the chip's usefulness for AI training, Goodrich said it is "probably the best chip in the world for inference."
"How long will Washington allow the best inference chip in the world to be sold to China?" he added.
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"DeepSeek’s work illustrates how new models can be created using that technique, leveraging widely-available models and compute that is fully export control compliant," Nvidia said in its statement.
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It sounds like Nvidia is saying DeepSeek didn’t use any banned GPUs. An huge shipment 5000cc of IV Copium is going to be needed for tens of thousands tech bros and China hawks.
 
FairAndUnbiased

FairAndUnbiased

Brigadier
Registered Member
tokenanalyst said:

A lot of people in the US are becoming financial and economic illiterates. When the price of a technology goes down the investment usually goes up. Imagine these idiots in the 80s when MOS technology introduced the 6052 and sold those for 20 bucks when the rest of the market was selling much more expensive CPUs, what comes next? the personal computer revolution. This could open the door for more companies to enter the game which will mean more investment. ​

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US stock market is institutional dominated, not individuals dominated.

The reason why they're dumping is to stop further loss. They were banking on being able to charge monopoly prices as a way to recover their investment. Alternatively they could buy out competition.

You can't charge monopoly prices without a monopoly and you can't buy out what is already open source and free.

If DeepSeek was an oligarch company that has a cheaper closed source model, it wouldn't be nearly the shock that it is. It'll just be another type of competitor. The open source free aspect is the shock.
 
plawolf

plawolf

Lieutenant General
styx said:
Deepseek: Sputnik moment. Hypersonic DF-17: Sputnik moment. Two advanced next-generation Chinese stealth fighter prototypes: Sputnik moment. Huawei smartphone with a 7nm CPU: Sputnik moment. HQ-19: Sputnik moment. So far, we've seen a hypersonic missile much less advanced than the Chinese ones (probably derived by some sixties' studies) and numerous attempts to block Chinese development, largely ineffective and counterproductive. It seems that America is now like its last two presidents: arrogant and not very capable of thinking. I propose to do a "sputnik moment" collection for the forum
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China is spamming Sputniks these days, so it’s more of a Spamnik flood.
 
siegecrossbow

siegecrossbow

General
Staff member
Super Moderator
plawolf said:
Poor dude is going to get Sarah Connor’d by the CIA at this rate.
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You think they’d be able to tell him apart from a billion other Chinese when 60 percent of ethnic Chinese Wumaos on this forum couldn’t?

sdkan said:
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Most of the photos of Liang Wenfeng used by the world media are wrong. This is the boss of the same name.
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coolgod

coolgod

Brigadier
Registered Member
daifo said:
I wonder if China is very close to EUV , efficient DUV or complete semiconductor supply chain then we think they are at. Seems they are just publicly flexing hard the past month rather than hiding their strength, unafraid of likely call for even more tech sanctions from the derange us hawks.
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All these drops are choreographed, to remind Trump and the US who has more leverage. We can expect another big drop (probably semiconductor/chip) related before Trump makes a deal with China.
 
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