00:00 Speaker A
Reuters reporting that China’s Deep Seek Dan developing its own AI chip, a push that could reduce its reliance on Nvidia. What did you make of that headline?
00:08 Speaker B
I think it’s interesting. You know, there’s there’s this fear uh that I mean first of all Nvidia’s chips can’t be sold into China. so obviously they had to figure out a way to power their own AI. Now, you know, between you, me and the wall, there’s some Nvidia chips out there. You know, smuggling has been reported. They find their way in there. Yes, exactly. Um and so, you know, the idea here being that, okay, well Deepsea could then be reliant on itself, develop the chips that it needs to power its own AI. And it’s similar to what we’ve seen, you know, I think here with, you know, Google and Amazon where, okay, well, we we don’t want to have to rely on on Nvidia, so we’ll get our own chips. And you know, Google’s been doing that for a long time. Uh Amazon’s been doing that uh for a long time. and now we could see Deep seek start to do this. I think the question then becomes, I mean, Microsoft’s doing it, Meta’s doing it, right? Everybody, you know, these big companies everybody.
00:54 Speaker B
Not everybody literally, but you know, I think the question then becomes, okay, so if Mike Microsoft want uh has its chips, Meta is looking at perhaps selling access, uh Amazon sells access, Google sells access, Deep seek builds its own chip, do they sell access? So and then what does that mean then in areas of the world where, you know, uh it’s not necessarily uh illegal to access that kind of technology, you know, back and forth. So, that I think could be one of those things that we look at and say, okay,
01:29 Speaker B
there’s a little bit of trouble going on in the chip space when it comes to that dominance that’s existed. And if China can sell this on the cheap, I mean, we’re looking at, you know, potential memory chips coming from China, that’s that that’s the conversation going on now with the current kind of memory shortage. it’ll be interesting to see what happens here.
01:46 Speaker A
What what did you think Open AI and Anthropic made of that Deep seek headline?
01:52 Speaker B
I mean, I think for them it’s probably, wow, they’re going to have their own chips now, but still, are they going to be able to have capacity to produce them? right? You know, uh when it comes to US companies, they’re getting everything from TSMC basically, you know, and obviously other chip manufacturers, but TSMC is doing the bulk of that. Um China can have its own manufacturing footprint if they can build it out fast enough.
02:20 Speaker B
you know, these open source uh AI models, they’re not exactly far off from where these closed source models are. Closed source being, you know, what Open AI has to offer, what Anthropic has to offer. If they can build chips that are maximized for their own kind of AI models, then they could start to advance much more uh quickly than, you know, they otherwise have. So that could be a threat in the long term. And I, you know, some uh uh people in tech or or some analysts are pointing to the fact that open source AI or open weights AI is cheaper than going with a closed source model.
02:59 Speaker B
And so, you know, you see certain companies moving in that direction or starting to embrace that more and, you know, Deepseek is one of those models that some companies are embracing. And so if they can uh build out their own chip capabilities and they’re able to do that in a way that maximizes their AI models, then yeah, I mean it could be an issue for Open AI and Anthropic.
