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The Decoder
Deepseek is designing its own AI chip
Deepseek, a Chinese startup, is venturing into AI chip design with a focus on creating chips for inference tasks instead of model training. This ambitious project is aimed at decreasing reliance on established suppliers such as Nvidia and Huawei. Nonetheless, Deepseek faces hurdles due to US export restrictions that limit access to leading technology. The startup is currently engaging with chip design and manufacturing firms while actively recruiting engineers in this space. Furthermore, Deepseek is seeking to raise $7 billion to enhance its operations and reach a valuation oscillating between $52 and $59 billion.
MonitorConfidence: MediumMid term horizonGeopolitical risk: High
Published 7 Jul 2026, 12:10 UTC1 min read
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Summary
TL;DR
- Deepseek is developing its own AI chip focused on inference.
- The initiative aims to reduce reliance on Nvidia and Huawei.
- The project is in early development stages with ongoing recruitment.
- US export controls pose challenges for Chinese chip development.
- Deepseek is seeking $7 billion in funding for expansion.
Interesting facts
- The chip is primarily designed for inference, a critical phase in AI performance.
- Despite the challenges, multiple competitors like OpenAI and Anthropic are also pursuing custom chips.