Facing US export controls, China's DeepSeek plans to make its own chips - Ars Technica

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DeepSeek, the Chinese startup developing large language models that are competitive with those from US companies like OpenAI and Anthropic, is planning to enter the silicon business, according to Reuters.

Citing three people familiar with the matter, Reuters writes that DeepSeek has been working on a move into silicon for about a year. It has been meeting with potential partners in the hardware and silicon space and has been hiring engineers for the project.

The focus is on data center chips for inference, not training, and the goal is likely to reduce reliance on both Huawei and Nvidia.

Nvidia is the chipmaker for most AI companies in North America and Europe, but a United States export ban has prevented the company from achieving a similar presence in China. Huawei controls about half of the data center chip market there, and DeepSeek isn’t the only one trying to enter; Chinese tech giants like Alibaba and Baidu have been making moves, too.

While chip export controls in the US are a major reason this is an urgent concern for DeepSeek, US-based AI companies are making similar chip plans.

For example, OpenAI and Broadcom jointly announced Jalapeño, the former’s first chip designed for inference at scale, just a couple of weeks ago. Anthropic, too, has been exploring custom chip design, though there have not been any publicly visible milestones yet.

In OpenAI’s case, it’s partly a play to reduce its reliance on Nvidia, but it’s also a desire to have Apple-like control over the entire tech stack for its products. Further, getting in at the silicon and data center levels can be an advantage in a market where data center access is likely to remain constrained, with multiple companies competing for compute as they scale up their AI models and services.

Samuel Axon

Senior Editor

Samuel Axon

Senior Editor

Samuel Axon is the editorial lead for tech and gaming coverage at Ars Technica. He covers AI, software development, gaming, entertainment, and mixed reality. He has been writing about gaming and technology for nearly two decades at Engadget, PC World, Mashable, Vice, Polygon, Wired, and others. He previously ran a marketing and PR agency in the gaming industry, led editorial for the TV network CBS, and worked on social media marketing strategy for Samsung Mobile at the creative agency SPCSHP. He also is an independent software and game developer for iOS, Windows, and other platforms, and he is a graduate of DePaul University, where he studied interactive media and software development.

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