DeepSeek's Rise Shows Limits of US Chip Controls

China's DeepSeek AI Model Sparks US Policy Debate Amid Growing Industry Concerns Chris Riotta (@chrisriotta) • January 28, 2025

A series of ratcheting U.S. restrictions on sales of advanced chips abroad didn't prevent Chinese firm DeepSeek from a technical breakthrough, a development that ignited calls for even tighter controls and pressure on American firms to innovate faster - or risk falling behind.

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The Friday debut of open-source reasoning model DeepSeek-R1 sent shockwaves through industry mainly for the technology behind it: a cluster of 2,048 Nvidia chips designed to get around export controls and a $5.6 million budget. Silicon Valley giant Meta disclosed needing 16,000 far more powerful chips to train version 3.1 of its Llama model in the first half of 2024. Analysts have cast doubt ...