DeepSeek Blocks Nvidia From Latest AI Model
Synopsis
DeepSeek has withheld its newest artificial intelligence model from U.S. chipmakers, including Nvidia, according to a Reuters report citing sources. The decision comes as Washington maintains export controls on advanced semiconductors to China. Nvidia recently projected strong quarterly sales driven by AI demand, underscoring the growing role of high-performance GPUs in training and deploying advanced AI systems across global data centers and technology companies.
DeepSeek has withheld its newest AI model from U.S. chipmakers, including Nvidia, sources told Reuters. The move comes amid ongoing U.S. export restrictions on advanced semiconductors to China. Nvidia recently forecast strong quarterly sales as demand for AI chips continues to expand across global technology and data center markets.
Key Highlights
- DeepSeek withholds latest AI model from U.S. chipmakers, including Nvidia.
- Reuters first reported the development, citing sources familiar with the matter.
- Decision comes amid U.S. export curbs on advanced AI chips to China.
- Nvidia recently forecast strong quarterly sales driven by AI demand.
Chinese artificial intelligence firm DeepSeek has withheld its latest AI model from major U.S. chipmakers, including Nvidia and Advanced Micro Devices, according to Reuters.
It said that DeepSeek did not provide advance access to its new model to U.S. semiconductor companies, breaking from common industry practice where AI developers share early versions to allow hardware makers to fine-tune performance. Instead, early access was reportedly limited to domestic Chinese suppliers.
Export Controls Shape AI Supply Chains
The decision comes amid ongoing U.S. export controls restricting shipments of advanced artificial intelligence chips to China. Washington has tightened curbs on high-performance graphics processing units, or GPUs, chips widely used to train and operate large AI models, citing national security concerns.
The AI chip market has grown rapidly over the past two years as technology companies and cloud service providers expand data centres to support generative AI systems. Industry estimates indicate the global AI semiconductor market is valued in the tens of billions of dollars annually, with strong double-digit growth driven by demand for high-performance computing.
NVIDIA, which dominates the global data centre GPU market, has been a key supplier of AI hardware. In its most recent reported quarterly results, the company posted revenue of $22.1 billion for the quarter ended October 29, 2023, more than tripling from a year earlier, largely due to data centre demand tied to artificial intelligence workloads.
Growing Competition in AI Development
DeepSeek’s open-source AI models have gained international attention, reflecting broader competition between Chinese and U.S. firms in advanced AI development. The restriction of model access to U.S. chipmakers may signal adjustments in supply chain coordination as geopolitical tensions influence technology partnerships.
The report did not specify whether the move would affect existing commercial arrangements or future collaboration between DeepSeek and U.S. semiconductor companies.
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Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
