DeepSeek boosts China’s chipmakers in race for affordable AI tech

DeepSeek boosts China’s chipmakers in race for affordable AI tech

Post by : Omar Nasser

Feb. 13, 2025 2:58 p.m. 1553

Photo : ANI

For many years, Chinese chip companies like Huawei have found it hard to compete with Nvidia in making strong computer chips for artificial intelligence (AI). AI training needs a lot of computer power, where big amounts of data are used to teach AI how to make smart choices. Nvidia is the top company in this area because its special chips are very fast and powerful.

Stay informed with the latest news. Follow DXB News Network on WhatsApp Channel  

But now, DeepSeek’s AI models are giving Chinese chipmakers a new chance. DeepSeek does not need too much computer power. Instead, it focuses on “inference,” which means using AI to give answers or make decisions after learning from data. Because of this, Chinese companies can use DeepSeek to improve their AI work, even though they cannot buy the latest U.S. chips due to trade rules.

Experts believe DeepSeek will help reduce the gap between Chinese chips and American chips. Chinese chips may not be the best for AI training, but they are becoming good for AI inference, which does not need as much power. This makes them useful for many industries.

Many big Chinese chip companies, such as Huawei, Hygon, Tencent-backed EnFlame, Tsingmicro, and Moore Threads, have announced that their chips will support DeepSeek. They hope this will make their products better. However, these companies have not shared full details yet. Huawei has not made any comment, and the other companies have not answered questions.

Because DeepSeek is open-source and cheaper, more companies in China are expected to start using AI in their business. This could help China deal with U.S. trade bans on high-power chips. Even before DeepSeek became popular, many Chinese companies preferred using AI inference instead of training, as it needs less computing power. For example, Huawei’s Ascend 910B chip is already being used by companies like ByteDance for inference tasks.

In China, many industries, including car makers and telecom companies, are now planning to use DeepSeek’s AI models in their work. Experts say this is a good match for Chinese chipmakers. Even though Chinese chips are not as strong as Nvidia’s for training AI, they are good enough for inference work, which is easier and does not need as much power.

Tech expert Lian Jye Su from research company Omdia says that AI inference is more flexible and does not need very strong chips. He also says that Chinese chipmakers understand local industry needs better, which will help them use DeepSeek AI models in the right way.

China is working hard to build its own strong technology. DeepSeek’s AI models may help Chinese chip companies grow and improve their AI business, even with the limits on buying U.S. chips.

Deadly Factory Fire in Daejeon Kills 11, Several Missing

A massive fire at an auto parts factory in Daejeon, South Korea, has killed 11 people, injured 59, a

March 21, 2026 1:20 p.m. 125

Sanofi Opens Innovation Centre in Chengdu China

Sanofi opens its first China Innovation Centre in Chengdu, boosting R&D, clinical trials, and supply

March 21, 2026 1:09 p.m. 125

Jordan, Egypt Condemn Terror Plot Targeting UAE

Jordan and Egypt strongly condemn a terror plot targeting the UAE’s economy, reaffirming support for

March 21, 2026 1:06 p.m. 131

Elon Musk Found Liable in Twitter Investor Case

A US jury found Elon Musk liable for misleading Twitter investors in 2022 deal, awarding up to $2.1

March 21, 2026 12:58 p.m. 127

BTS Comeback Concert Draws 260K Fans in Seoul

BTS holds a mega comeback concert in Seoul with 260,000 fans, marking their first album in 3 years a

March 21, 2026 12:51 p.m. 126

UAE DMT Prepares for Weather Alert March 21–27

Abu Dhabi’s DMT activates emergency plans, deploys teams, and urges public caution as unstable weath

March 21, 2026 11:59 a.m. 130

Dubai Property Market Faces War-Driven Slowdown

Dubai’s real estate market shows early slowdown as Iran war impacts investor confidence, with fallin

March 21, 2026 11:32 a.m. 152

Trump Hints at Ending Military Ops as US Eases Iran Oil Sanctions

Trump may soon end US military action in the Middle East as Iran attacks continue. US temporarily ea

March 21, 2026 11:08 a.m. 149

Aryna Sabalenka Survives Tough Battle at Miami Open

World No.1 Aryna Sabalenka wins a tight match vs Ann Li at Miami Open. Top seeds Alcaraz, Rybakina,

March 21, 2026 10:55 a.m. 149
Sponsored
https://markaziasolutions.com/
Trending News

Bank of Baroda Faces Abu Dhabi Legal Battle over NMC Collapse

Bank of Baroda’s involvement in Abu Dhabi litigation tied to the NMC Healthcare collapse raises repu

Feb. 23, 2026 6:01 p.m. 761

Top Museum Openings of 2026 Set to Transform Global Tourism

From Los Angeles to Abu Dhabi and Brussels, 2026 brings major museum launches—Lucas Museum, Guggenhe

Feb. 23, 2026 5:36 p.m. 746

UAE Tour Highlights UAE’s Strength in Hosting Global Sports Events

Abu Dhabi Sports Council says the successful UAE Tour reflects the UAE’s leading role in hosting maj

Feb. 23, 2026 4:21 p.m. 734

EU Seeks Clarity from US After Supreme Court IEEPA Ruling

European Commission urges full transparency from the US on steps after Supreme Court ruling, emphasi

Feb. 23, 2026 4:04 p.m. 683

SpaceX Launches 53 New Satellites for Expanding Starlink Network

SpaceX launches 53 Starlink satellites in two Falcon 9 missions, breaking reuse records and expandin

Feb. 23, 2026 3:51 p.m. 683

RTA Awards Contract for Phase II of Hessa Street Upgrade in Dubai

Phase II of Hessa Street Development to add bridges, tunnel, and upgraded intersections, doubling ca

Feb. 23, 2026 3:20 p.m. 776

UAE Gold Prices Today, Monday 16 February 2026: Dubai & Abu Dhabi Updated Rates

Gold prices in UAE on 16 Feb 2026 updated: 24K around AED 599.75/gm, 22K AED 555.25/gm, and 18K AED

Feb. 16, 2026 6:04 p.m. 1274

Over 25 Ahmedabad Schools Receive Bomb Threat Email, Authorities Investigate

More than 25 schools in Ahmedabad evacuated after bomb threat emails mentioning Khalistan. Authoriti

Feb. 16, 2026 2:34 p.m. 724