Investing.com — DeepSeek’s upcoming large language model R2 may face adoption challenges in China due to shortages of Nvidia (NASDAQ:NVDA) server chips, according to a report by The Information on Wednesday.
The chip shortage has worsened following the recent US ban on Nvidia’s H20 chips, which were specifically designed for the Chinese market. Most cloud customers currently using DeepSeek’s popular R1 model are running it on these H20 chips.
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While engineers have been working intensively on the new model for several months, CEO Liang Wenfeng is not yet satisfied with its performance, the report added. DeepSeek has not yet determined when R2 will be released.
The company’s engineering team continues to refine R2 and will only release it after receiving approval from Liang. If R2 outperforms existing open-source models upon release, demand is expected to overwhelm Chinese cloud providers already struggling with Nvidia chip shortages.
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