Chaos at DeepSeek as R2 launch crashes into hardware problems - rivals gain huge advantage
Key Insights
DeepSeek's R2 model launch faces significant delays due to hardware issues with Huawei’s Ascend chips, forcing a switch back to Nvidia hardware for training. Competitors like Alibaba’s Qwen3 are capitalizing on these setbacks.
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DeepSeek's R2 Model Hits a Snag: What Went Wrong?
- Hardware Hurdles: Persistent issues with Huawei’s Ascend chips have stalled the R2 model's launch, originally slated for May 2025.
- Plan B: DeepSeek is reverting to Nvidia hardware for training, though inference tasks still rely on Ascend.
- Competitor Advantage: Rivals like Alibaba’s Qwen3 are seizing the opportunity to advance their own AI models.
Implications: This situation highlights the challenges in China's push for AI self-sufficiency and the delicate balance between political goals and technological realities. Businesses should monitor how these developments might influence the AI landscape and their strategic decisions.