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Chinese AI Startup Outsmarts US Sanctions with 50,000 Nvidia Chips

DeepSeek, a Chinese AI startup, has developed DeepSeek R1, an open-source reasoning model that matches or even surpasses OpenAI’s ChatGPT o1 on several benchmarks. Despite US export controls on advanced semiconductors, DeepSeek managed to innovate by using a stockpile of 50,000 Nvidia A100 chips, now banned for export to China. The company also released six smaller versions of R1, one of which outperforms OpenAI’s o1-mini on certain benchmarks. DeepSeek’s approach focuses on efficiency, reducing computing time while maintaining high effectiveness. The startup, founded in July 2023, aims to build artificial general intelligence (AGI) and has embraced open-source principles, contributing to the global AI landscape where China ranks second with 36% of the world’s AI large language models.

Source: www.technologyreview.com

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