Chinese AI startup DeepSeek, known for its innovative models, is actively developing its own processor for inference tasks. This project, launched about a year ago, is already in its early stages: the company is negotiating with external partners on chip design, contract manufacturing, and memory components.
Focus on Inference, Not Training
It is important to emphasize that the new chip is aimed exclusively at the third stage of the neural network lifecycle — inference, i.e., running ready-made models, not training them. This is a strategically sound decision: demand for inference solutions is growing at a tremendous pace, especially amid export restrictions from the United States. DeepSeek is already actively hiring chip design engineers in a closed mode, confirming the seriousness of its intentions.
Reducing Dependence on Nvidia and Huawei
Previously, DeepSeek relied on chips from Nvidia (the H800 model, adapted for the Chinese market) and Huawei (Ascend processors, used for training V4-Flash). However, its own hardware will allow the company to reduce dependence on these vendors, especially considering that startup founder Liang Wenfeng called chip export controls a key issue as early as 2024. This is not just a technological move, but a matter of survival under geopolitical pressure.
Competition and Risks
The race for proprietary AI infrastructure is intensifying: participants include OpenAI, Broadcom, Anthropic, Alibaba, and Baidu. However, DeepSeek's success is far from guaranteed. High competition, massive capital investments, and limited access to advanced foreign fabs (e.g., TSMC) create serious barriers. Nevertheless, if the project succeeds, it will send a powerful signal to the entire Chinese tech sector.
My Expert Opinion
DeepSeek is clearly betting on vertical integration, which in the long term could give it a significant advantage. However, in the early stages, the company will face the same problems as other players: a shortage of lithography equipment and dependence on Western technologies. If DeepSeek can bypass these restrictions, we will see a new round of competition in the AI chip market, where China will play the role not of a follower, but of an equal player.