DeepSeek drives up demand for low-cost AI models, Nvidia H20 chip orders surge
2025-02-25 19:59:25

According to a Reuters report on February 25, Nvidia's H20 artificial intelligence (AI) chip orders in China have increased significantly due to the increased demand of Chinese companies for DeepSeek's low-cost AI model. The report said that the H20 chip was designed by Nvidia for the Chinese market to comply with US export control regulations. Two people familiar with the matter said that since DeepSeek attracted global attention last month, Chinese companies Tencent, Alibaba and ByteDance have "significantly increased" orders for H20. In addition to their internal needs for advanced AI chips, the three technology giants also provide cloud computing services to enable other companies to obtain and use AI tools. According to the report, a source from a server manufacturer pointed out that small and medium-sized enterprises in industries such as medical and education are also purchasing AI servers equipped with DeepSeek models and Nvidia's H20 chips. The source also said that previously only financial and telecommunications companies would purchase servers with AI computing systems.
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