Representative image.
| Photo Credit: Reuters

The H200 chip, unveiled two years ago, has more high-bandwidth memory than its predecessor, the H100, allowing it to process data more quickly. File
| Photo Credit: Reuters

Deepseek logo is seen in this illustration taken January 27, 2025.
| Photo Credit: Reuters

Chinese startup DeepSeek’s launch of its latest AI models, which it says are on a par or better than industry-leading models in the United States at a fraction of the cost, is threatening to upset the technology world order.

The company has attracted attention in global AI circles after writing in a paper in December 2024 that the training of DeepSeek-V3 required less than $6 million worth of computing power from Nvidia H800 chips.

DeepSeek’s AI Assistant, powered by DeepSeek-V3, has overtaken rival ChatGPT to become the top-rated free application available on Apple’s App Store in the United States.

This has raised doubts about the reasoning behind some U.S. tech companies’ decision to pledge billions of dollars in AI investment and shares of several big tech players, including Nvidia, have been hit.

Some facts about the company shaking up the AI sector worldwide:

Why is DeepSeek causing a stir?

The release of OpenAI’s ChatGPT in late 2022 caused a scramble among Chinese tech firms, who rushed to create their own chatbots powered by artificial intelligence.

But after the release of the first Chinese ChatGPT equivalent, made by search engine giant Baidu, there was widespread disappointment in China at the gap in AI capabilities between U.S. and Chinese firms.

The quality and cost efficiency of DeepSeek’s models have flipped this narrative on its head. The two models that have been showered with praise by Silicon Valley executives and U.S. tech company engineers alike, DeepSeek-V3 and DeepSeek-R1, are on par with OpenAI and Meta’s most advanced models, the Chinese startup has said.

They are also cheaper to use. The DeepSeek-R1, released last week, is 20 to 50 times cheaper to use than OpenAI o1 model, depending on the task, according to a post on DeepSeek’s official WeChat account.

But some have publicly expressed scepticism about DeepSeek’s success story.

Scale AI CEO Alexandr Wang said during an interview with CNBC on January 23, 2025, without providing evidence, that DeepSeek has 50,000 Nvidia H100 chips, which he claimed would not be disclosed because that would violate Washington’s export controls that ban such advanced AI chips from being sold to Chinese companies. DeepSeek did not immediately respond to a request for comment on the allegation.

Bernstein analysts on Monday (January 27, 2025) highlighted in a research note that DeepSeek’s total training costs for its V3 model were unknown but were much higher than the $5.58 million the startup said was used for computing power. The analysts also said the training costs of the equally-acclaimed R1 model were not disclosed.

Who is behind DeepSeek?

DeepSeek is a Hangzhou-based startup whose controlling shareholder is Liang Wenfeng, co-founder of quantitative hedge fund High-Flyer, based on Chinese corporate records.

Mr. Liang’s fund announced in March 2023 on its official WeChat account that it was “starting again”, going beyond trading to concentrate resources on creating a “new and independent research group, to explore the essence of AGI” (Artificial General Intelligence). DeepSeek was created later that year.

ChatGPT makers OpenAI define AGI as autonomous systems that surpass humans in most economically valuable tasks.

It is unclear how much High-Flyer has invested in DeepSeek. High-Flyer has an office located in the same building as DeepSeek, and it also owns patents related to chip clusters used to train AI models, according to Chinese corporate records.

High-Flyer’s AI unit said on its official WeChat account in July 2022 that it owns and operates a cluster of 10,000 A100 chips.

How does Beijing view DeepSeek?

DeepSeek’s success has already been noticed in China’s top political circles. On January 20, 2025, the day DeepSeek-R1 was released to the public, Mr. Liang attended a closed-door symposium for businessman and experts hosted by Chinese premier Li Qiang, according to state news agency Xinhua.

Mr. Liang’s presence at the gathering is potentially a sign that DeepSeek’s success could be important to Beijing’s policy goal of overcoming Washington’s export controls and achieving self-sufficiency in strategic industries like AI.

A similar symposium in 2024 was attended by Baidu CEO Robin Li.

Nvidia CEO Jensen Huang has a distinct approach to time and explained why he chooses not to wear a watch. Speaking at a tech event, Mr Huang, whose company Nvidia has seen its valuation skyrocket in recent years, emphasized the value of living in the present moment.

“Very few people know this, but I don’t wear a watch. The reason I don’t is that now is the most important time. You might be surprised, but I’m not particularly ambitious. I don’t aspire to do more; I want to do better at what I’m currently doing. I’m not striving for more-I wait for the world to come to me. Those who know me are aware that Nvidia doesn’t have a long-term strategy. We have no grand plan. Our definition of a long-term plan is simply: What are we doing today?”

An Instagram account, @entrepreneursonig, shared a video of Huang discussing his philosophy at the event, with the caption: “Doing more is easy; doing less is hard. Jensen Huang, CEO and co-founder of NVIDIA, shares how he and his company focus on the present, ultimately shaping their future.”

In 2023, Huang shared a story from a conversation with a Japanese gardener, which shaped his perspective on the subject. The billionaire recounted meeting a gardener who “lovingly tended to a temple in Kyoto” and managed to maintain the garden’s mossy perfection despite the heat, the garden’s size, and his small tools. When asked how he did it, the gardener replied, “I have plenty of time.”

Huang reflected, “This is the best career advice I can give: Now is the most important time-just focus on the present. I’m rarely chasing things… I’m focused on now. I’m enjoying my job.”

 

New York:

Prime Minister Narendra Modi today convened a high-profile roundtable with top American technology CEOs, focusing on innovation, collaboration, and India’s growing tech space. The meeting, held at the Lotte New York Palace Hotel, was part of PM Modi’s three-day visit to the United States, with its second leg in New York. 

Hosted by the Massachusetts Institute of Technology (MIT) School of Engineering, the roundtable saw participation from leaders of companies specialising in artificial intelligence, quantum computing, semiconductors, and biotechnology.

The roundtable was attended by prominent CEOs like Google’s Sundar Pichai Nvidia’s Jensen Huang and Adobe’s Shantanu Narayen.

In a post on X (formerly Twitter), Prime Minister Modi said, “Had a fruitful roundtable with tech CEOs in New York, discussing aspects relating to technology, innovation, and more. Also highlighted the strides made by India in this field. I am glad to see immense optimism towards India.”

Had a fruitful roundtable with tech CEOs in New York, discussing aspects relating to technology, innovation and more. Also highlighted the strides made by India in this field. I am glad to see immense optimism towards India. pic.twitter.com/qW3sZ4fv3t

— Narendra Modi (@narendramodi) September 23, 2024

The Ministry of External Affairs (MEA) said in a statement that the roundtable focused on cutting-edge sectors, including Artificial Intelligence (AI), quantum computing, biotechnology, and semiconductor technologies.

“The CEOs participated in a deep dive with Prime Minister on the evolving technology landscape at a global level and how these cutting-edge technologies are contributing to the well-being of people around the world including in India. They touched upon how technology is being leveraged for innovations, which have the potential to revolutionize the global economy and human development,” the MEA said in a statement. 

On Artificial Intelligence (AI), the Prime Minister stressed that India’s policy is to promote ‘AI for All’, underpinned by its ethical and responsible use.

PM Modi also reassured the CEOs of India’s strong commitment to protecting intellectual property and fostering a conducive environment for technology-led innovation. He encouraged the business leaders to capitalise on India’s growth trajectory, pointing to the nation’s potential to become the third-largest economy globally.

The meeting also explored opportunities to invest in India’s burgeoning startup ecosystem, where innovations in technology are accelerating. Startups were seen as a crucial bridge for American companies to enter the Indian market and contribute to creating new technologies and solutions.

MIT Professor Anantha Chandrakasan, who chaired the session, thanked PM Modi and the participating CEOs for their contributions. He affirmed MIT’s ongoing commitment to using technology for global good and advancing collaboration between the United States and India in critical technology sectors.
 

As tropical storm Bebinca barrels towards waters off northern Taiwan gathering strength into a possible typhoon, weather forecasters in Taipei are using a new and so far successful method to help track its path – artificial intelligence (AI).

AI-generated forecasts, some powered by software from tech giants including Nvidia, whose chips are made by Taiwan’s homegrown semiconductor champion TSMC, have so far outperformed traditional methods in predicting typhoon tracks.

In July, it was AI-based weather models, used for the first time, that helped Taiwan better predict the path and impact of Typhoon Gaemi, the strongest to strike the island in eight years that brought record-breaking rainfall.

The new technology impressed Taiwan forecasters by predicting a direct hit as early as eight days before Gaemi made landfall – handily outperforming conventional methods, which remain the mainstay of prediction planning.

“People are starting to realise AI indeed delivered some stunning performances compared to conventional models,” said Chia Hsin-sing, director at the weather service provider Taiwan Integrated Disaster Prevention of Technology Engineering Consulting Company Ltd.

Bebinca is now being tracked using the same AI tools by people including Lin Ping-yu, a forecaster at Taiwan’s Central Weather Administration (CWA), who said AI has given them a higher degree of confidence there will not be a direct hit.

“This (AI) is a good thing for us. It is like having one more useful tool to use,” said Lin.

The AI weather programmes on offer include Nvidia’s FourCastNet, Google’s GraphCast and Huawei’s Pangu-Weather, as well as a deep learning-based system by European Centre for Medium-Range Weather Forecasts.

“It is a hotly watched competition. We will know soon who is winning,” said Chia.

Such AI models have also begun to be used to predict storms and hurricanes in other regions with good accuracy, according to forecasters and academics.

The AI-based software is trained using historical weather data to learn the cause and effect relationships of meteorological systems and can predict hundreds of weather variables days in advance – a process that requires only a few minutes to complete.

For all the typhoons in the Western Pacific this year up until mid-September, AI’s accuracy in predicting storm tracks over a three-day window was nearly 20% higher than that of conventional models, according to data compiled by the CWA.

Ahead of Gaemi, AI helped the administration foresee an unusual loop in its path that prolonged its impact on Taiwan and prompted them to swiftly issue a rare warning for rainfall of 1.8 metres (5.9 feet), which was later proven accurate, according to CWA’s deputy head Lu Kuo-Chen.

“(AI) boosted the confidence for forecasters to make that prediction,” Lu said, adding the early warning gave extra time for authorities to carry out preparations.

Lu is also pinning hopes on a partnership with Nvidia, which this year announced a generative AI tool called CorrDiff that aims to forecast more precise locations of typhoon landfall and provide higher resolution images inside a storm.

“We are seeing the potential,” Lu said.

For now, however, experts say the AI tools were not able to deliver quality forecasts for more detailed impact of a typhoon, such as its strength and winds, and more time is needed for the new technology to solidify its lead over more traditional ways.

“Was it just good luck?” said Chia, pointing to AI’s stellar performance on Gaemi. “We need to give AI a bit more time. It is something to look forward to.”

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

Intel CEO Pat Gelsinger and key executives are expected to present a plan later this month to the company’s board of directors to slice off unnecessary businesses and revamp capital spending, according to a source familiar with the matter, as they try to revive the once-dominant chipmaker’s fortunes.

The plan will include ideas on how to shave overall costs by selling businesses, including its programmable chip unit Altera, that Intel can no longer afford to fund from the company’s once-sizeable profit.

Gelsinger and other high-ranking executives at Intel are expected to present the plan at a mid-September board meeting, the same source said.

Details of Gelsinger’s proposal are reported here for the first time.

Intel declined to comment.

The proposal does not yet include plans to split Intel and sell off its contract manufacturing operation, or foundry, to a buyer such as Taiwan Semiconductor Manufacturing Co., according to the source and another person familiar with the matter.

The presentation, including the plans around its manufacturing operations, is not yet finalized and could change ahead of the meeting.

Intel has already broken off its foundry business from its design business, and has been reporting its financial results separately since the first calendar quarter of this year.

The company has erected a wall between the design and manufacturing businesses to assure that potential customers of the design division would have no access to the technology secrets of customers using Intel’s factories, known as fabs, to manufacture their chips.

Intel is suffering through one of its worst periods as it attempts to play catchup in the AI era against the likes of Nvidia, the dominant AI chipmaker with a $3 trillion market capitalization. In contrast, Intel has now sunk to below $100 billion after a disastrous second-quarter earnings report in August.

The proposal Gelsinger and others will present is likely to include plans to further reduce the company’s capital spending on factory expansion. The pitch may include plans to pause or altogether halt its $32 billion factory in Germany, a project that has reportedly been delayed, the source said.

In August, Intel said it expects to cut capital spending to $21.5 billion in 2025, down 17% from this year, and issued a weaker-than-expected third-quarter forecast. 

In addition to the CEO and executive plans, Intel has retained Morgan Stanley and Goldman Sachs to advise the board on what businesses Intel can sell and what it needs to retain, according to two sources with knowledge of the company’s advisory plans. 

Intel has not yet asked for bids on the product units, but will likely do so once the board endorses a plan, according to the two sources familiar with the company’s advisory plans.

ALTERA SPIN-OUT

The mid-September board meeting is pivotal for the one-time chipmaking king. Intel reported a disastrous second quarter in August, which included pausing the company’s dividend payments and a 15% staff cut, aimed at saving $10 billion.

Weeks later, chip industry veteran Lip-Bu Tan resigned from the board after months of debate over the company’s future, Reuters reported, creating a vacuum of deep semiconductor business experience on the board.

Last Thursday, after the Reuters report, Gelsinger sought to reassure investors about the company’s weak financial performance.

“It’s been a difficult few weeks,” Gelsinger said at a Deutsche Bank conference. “And we’ve been working hard to address the issues.”

Gelsinger said the company is “taking seriously” what investors have said and that Intel is focused on phase two of the company’s turnaround plan.

Part of those plans will remain unresolved until the mid-September meeting. Then, the company’s directors will likely make crucial decisions about which businesses Intel will keep and which it will shed.

One potential unit the company may look to unload is its programmable chip business, Altera, which Intel acquired for $16.7 billion in 2015. Intel has already taken steps to spin it out as a separate but still wholly owned subsidiary and has said it planned to sell a portion of its stake in an initial public offering in the future, though it has not set a date.

But Altera could also be sold entirely to another chipmaker interested in growing its portfolio, and the company has quietly begun exploring whether a sale would be possible, according to one source familiar with its advisory plans and one of the sources familiar with the plans to cut businesses.

Infrastructure chipmaker Marvell is one potential buyer for such a transaction, according to one of the sources.

Bloomberg earlier reported various options for Intel including a potential split of Intel’s product design and manufacturing businesses that is expected to be discussed at the board meeting.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Nvidia Corp., the world’s biggest chipmaker, has discussed joining a funding round for OpenAI that would value the artificial intelligence startup at more than $100 billion, according to people familiar with the matter.

Apple Inc. and Microsoft Corp. also have been in talks about participating in the financing, said the people, who asked not to be identified because the deliberations are private. The round would be led by Thrive Capital, which is investing about $1 billion, Bloomberg reported earlier this week. Nvidia has discussed investing about $100 million, two of the people said.

If the discussions move forward, it would mean the three most valuable tech companies are all backing OpenAI, maker of the groundbreaking ChatGPT chatbot. Microsoft was already OpenAI’s biggest funder, having invested roughly $13 billion.

Representatives for Nvidia, Apple, Microsoft, OpenAI and Thrive all declined to comment.

Big Tech’s influence over artificial intelligence has been drawing mounting scrutiny, with regulators in both the EU and US expressing concerns about Nvidia’s dominance in AI chips and Microsoft’s close relationship with OpenAI. Microsoft has tightly integrated OpenAI’s services into its Windows and Copilot AI platforms – a bet that the capabilities will help drive growth.

Apple has existing ties with OpenAI as well. The iPhone maker is adding ChatGPT to its new suite of AI features, called Apple Intelligence. The company also was slated to take a board observer seat at OpenAI – alongside Microsoft – but those plans were dropped in July.

Nvidia, meanwhile, supplies the critical infrastructure needed to develop and run AI tools like ChatGPT. It’s the biggest maker of so-called AI accelerators, sales of which have soared over the past two years.

In Nvidia’s latest quarterly report, released on Wednesday, revenue more than doubled to $30 billion. It predicted even bigger sales in the current quarter, topping the average analysts estimates, though investors have grown so accustomed to blowout results that the shares still declined.

OpenAI Chief Financial Officer Sarah Friar told employees in a memo Wednesday that the company was seeking fresh capital, without giving details, according to people familiar with the matter. The company has been in discussions to raise funding at a valuation at or above $100 billion since at least December, Bloomberg has reported.

The financing would bolster one of the world’s most valuable venture-backed startups. The runaway success of ChatGPT also has kicked off an arms race among tech companies, which are integrating AI technology across their products and funding other promising startups.

In her memo to employees, Friar said that OpenAI would use the financing to acquire more computing power and fund other operating expenses, the people said.

The Wall Street Journal previously reported on the discussions with Apple.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

Until quite recently, Nvidia wasn’t much of a household name outside of Silicon Valley or Wall Street. But times clearly have changed for the Santa Clara, California-based tech company with the easily mispronounced moniker. Across a growing range of technologies and gadgets, tiny chips made by Nvidia play an outsized role in our lives. And thanks to the explosion of artificial intelligence, perhaps our future as well.

But before Nvidia became the world’s most valuable chipmaker, the $3 trillion company had a more humble calling: making graphics cards for video game consoles. In the Bloomberg Originals mini-documentary How Nvidia Changed the Game, we show how a gargantuan technology company that’s held investors in its thrall got so big seemingly overnight. 

Nvidia didn’t have a great day on Wednesday (or today for that matter)-not because its $32.5 billion revenue projection for the third quarter was somehow terrible, but rather because it didn’t blow the doors off of analyst projections. However, none of the Wall Street handwringing that’s followed diminishes the story of how the company managed to succeed thanks to an incredible bit of long-term planning.

Today, Nvidia dominates the graphics industry. But when it started back in the 1990s, it was just one of many fledgling tech companies with similar ideas. Chief Executive Officer Jensen Huang chose to focus on an area where there was a lot of money to be made: video games. While using the cash that tumbled in to fund Nvidia’s research and development, he leveraged the company’s accelerating chip technology to branch out to a wider range of products and sectors.

In How Nvidia Changed the Game, Bloomberg Originals shows how this strategy eventually placed Nvidia at the heart of dual revolutions in cryptocurrency and-most importantly-artificial intelligence.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)