DeepSeek’s next-gen AI model delayed by Nvidia GPU export restrictions to China — short supply of AI GPUs hinders development | No hardware, no AI?

“It looks like development of the next-generation R2 model has stalled due to shortage of Nvidia’s H20 processors in China, reports *The Information.*

The U.S. government restricted sales of Nvidia’s H20 processors for AI training and inference in mid-April. While the unit is a severely cut-down version of the popular H100 GPU, due to reliance of Chinese AI companies on Nvidia’s CUDA software stack, H20 was a quite popular product among such entities in the People’s Republic with Nvidia selling billions of dollars’ worth of H20 processors every quarter. 

DeepSeek’s AI software is reportedly optimized for Nvidia’s hardware, which makes the company particularly vulnerable to U.S. policy decisions. Although the company claims to have developed its models using far fewer resources than U.S. companies like OpenAI, the recent export curbs highlight a critical weakness: China’s top AI companies remain heavily dependent on American hardware. Meanwhile, OpenAI has unofficially accused DeepSeek of using its proprietary models during the development of R1, although the company has not addressed these claims publicly.”

LOL, as if China has dearth of GPUs through official/unofficial means.

Just look at these numbers just for [EDWC project](https://ibb.co/Z1mms678)

Not to even consider Huawei’s CloudMatrix-384.