AI catch up

DeepSeek is developing its own AI chips, according to inside sources quoted by Reuters. If such chips were on the same level as US chips used for AI development, this would signal a major milestone towards self-sufficiency for the tech startup, which has made the news multiple times over the past year relating to allegations of illicitly acquiring restricted Nvidia chips and distilling various American AI models, including those of OpenAI and Anthropic.

At the same time, there is also reported to be talks involving Chinese policy makers and representatives of the top tech companies, in which the prospect of restricting overseas access to China’s top-tier of AI tech is on the table. As with the DeepSeek development, this suggests that China may be getting to a point where it feels it is catching up to the US in capabilities and seeks to guard whatever advantages it has.

Nevertheless, the overall situation still feels to be one of following in the footsteps of the US and trying to play catch up through reverse engineering, rather than any significant innovation taking place. As Chinese tech continues to improve, no doubt Nvidia and the other pioneers in the US will at the same time be pushing ahead to keep the lead.