By Fanny Potkin and Che Pan
Singapore / Peijing (Reuters) – Chinese companies accelerate orders for the artificial intelligence chip of Nvidia (NVDA) due to the booming demand for low -cost AI models of Deepseek, said six familiar people with the case.
The sharp increase in orders, which is reported for the first time by Reuters, underlines the domination of the Nvidia market and could help relieve the concerns that Deepseek could cause a slide in the demand for IA chips.
At the end: February 24 at 4:00 p.m.
Tencent (0700.hk), Alibaba (Baba) and bytedance have “significantly increased” Orders of the H20 – A chip specific to china due to us export controls – since the chinese ai startup burst intro the global public consciious laast month, Two of People said.
In addition to their internal needs of advanced AI chips, the three technological giants provide cloud computing services through which other companies can access and use AI tools.
Small businesses in sectors like Healthcare and Education also buy AI servers equipped with Deepseek models and Nvidia H20 chips, a source said in one of the largest manufacturers of Chinese servers. Previously, only financial and telecommunications companies with deep pockets bought servers with IA computer systems, added the source.
The administration of the American president Donald Trump plans to impose restrictions on the sale of the chip H20 on China, reported Reuters. Although the threat of additional controls can be a factor in the jump of orders, the sources have cited Deepseek as reason.
The sources have not provided details on the size of the controls. They were not allowed to speak to the media and refused to be identified.
NVIDIA did not respond to requests on the request of H20 that she saw from China, but said that her products had gained “to merit in a competitive field”. The company should publish quarterly results on Wednesday.
Tencent, Bytedance and Alibaba did not respond to requests for comments.
Deepseek’s major language models compete with Western performance systems at a cost fraction because they focus on “inference” or the production of conclusions. This optimizes calculation efficiency rather than relying solely on the gross treatment power.
“When Deepseek was launched, many have poorly judged that the demand for computing power could stagnate or decrease. In reality, the more advanced AI models push more in -depth integration into daily life, exponentially increasing the need for calculations of calculations Inference, “said Nori Chiou, director of Place Oak Capital Partners.
A global rout induced by Deepseek in IA’s actions which started on January 24 saw Nvidia’s actions lose up to a fifth of their value at a given time, but they have since found most of this land and are not down 3% for the year to date.
