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DeepSeek and influence on global chip demand

Joyce Chen
Joyce Chen
DeepSeek stormed the LLM market, but may bring in more demand for AI chips in the future.
Abstract

Chinese AI startup DeepSeek has rapidly gained traction by focusing on low-cost, high-performance large language models (LLMs). Its latest open-source model, DeepSeek-R1, demonstrates intelligence on par with mainstream models, highlighting breakthroughs in both software and hardware technologies and accelerating progress toward artificial general intelligence (AGI).

According to DIGITIMES, DeepSeek's emergence encourages the industry to explore similar generative AI applications and services, which is expected to drive increased demand for the computing power of AI chips.

With its open-source strategy and cost advantage, DeepSeek emphasizes open collaboration and community participation, accelerating technological iteration and mitigating the risks of technology blockade through decentralization. By optimizing code scheduling mechanisms to reduce computing costs and improve model development and deployment efficiency, the company has shown an advantage in the competitive LLM market.

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Published: March 24, 2025

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