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DeepSeek delays new model over Huawei chip failure

Aug 14, 2025, 7:32am EDT
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Huawei servers at an AI conference.
Go Nakamura/Reuters

Chinese AI firm DeepSeek delayed the release of its latest model after failing to train it on the Huawei chips it uses, highlighting the limits of Chinese processors.

DeepSeek — which earlier this year shocked the AI industry after unveiling a highly efficient model — had been encouraged to use Huawei technology by government officials.

The firm’s move comes just days after Beijing warned Chinese AI firms to avoid buying Nvidia’s H20 chips over security and quality concerns.

Nvidia tailored the lower-performance chip to meet US sanctions on the export of its technology to China. However, experts cautioned that Chinese chip manufacturers are fast catching up with the US: “It’s a matter of time,” a US-based researcher told the Financial Times.

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