00:00 Speaker A
Reuters reports that China’s Deep Seek Dan is developing its own AI chip, which could reduce its dependence on Nvidia. What did you think of that headline?
00:08 Speaker B
I think it’s interesting. You know, there’s fear. So, first of all, Nvidia chips can’t be sold to China. So obviously they had to find a way to enhance their own AI. Now, between you and me and the wall, there are some Nvidia chips. As you know, smuggling has been reported. They find their way there. Yes, that’s right. Well, the idea here is that Deepsea can rely on itself to develop the chips it needs to power its own AI. And this is similar to what we’ve seen so far. Google and Amazon don’t want to rely on Nvidia, so they get their own chips. And you know, Google has been doing that for a long time. Oh, and Amazon has been doing that for a long time. Now we know that Deep Seek initiates this. So I think the question is whether Microsoft is doing it or Meta is doing it. You guys, you know, all these big companies.
00:54 Speaker B
Not literally everyone, but you know, I think the next question would be: Mike If Microsoft wants a chip, Meta is probably looking at selling Access, Amazon is selling Access, Google is selling Access, Deep Seek is building their own chip, but are they selling Access? So what does that mean in parts of the world where it’s not necessarily illegal to access that kind of technology? So I think that could be one of those things that we look at and say, “Okay.”
01:29 Speaker B
There’s a bit of a problem in the chip industry with the advantages that have existed for some time. And if China can sell this cheaply, that means we are considering the possibility of memory chips from China. That’s the conversation that’s happening right now around memory shortages like this one right now. It will be interesting to see what happens here.
01:46 Speaker A
What did you think of the Deep Seek headline “Open AI and Anthropic”?
01:52 Speaker B
I mean, I think for them, maybe, wow, they’re going to have their own chip now, but still, will they have the ability to produce it? right? As for the US companies, they basically source everything from TSMC, and of course they source from other chip makers, but TSMC does the bulk of it. Well, China could have its own manufacturing base if it could build fast enough.
02:20 Speaker B
As you know, these open source AI models are not far from the existence of closed source models. Closed source is what open AI offers, which is what Anthropic offers. If they can build chips that are optimized for their own kind of AI models, they could start making progress much faster than they would otherwise. Therefore, it can be a threat in the long run. And I, some people in the technology industry and analysts, point to the fact that open source AI or open weight AI is less expensive than using a closed source model.
02:59 Speaker B
You know, we’re seeing certain companies moving in that direction or starting to adopt it more. Deepseek is one model that some companies are adopting. So if they can build their own chip capabilities and do it in a way that gets the most out of their AI models, that could be a problem for Open AI and Anthropic.
