banning DeepSeek in the United States.
China asserts that DeepSeek utilizes significantly fewer chips compared to its competitors, while the firm contends that its DeepSeek R1 model can operate on a single chip. This revelation sent tremors throughout the industry and provided the nation with leverage against global chip manufacturers. In September, China took another step by revealing that the state-owned company Alibaba had developed a new chip capable of competing with Nvidia’s H20 platform, which was specifically crafted for the Chinese market.
This announcement follows the country’s directives to ByteDance, Tencent, and various other Chinese firms to cease any future orders of Nvidia chips, as well as to terminate the utilization of Nvidia chips in the testing and development of AI technologies. Nvidia currently leads the market in supplying AI hardware, but China now believes that its local chips can rival them on an equal level, prompting the nation to impose a ban on Nvidia imports.
