Nvidia out? DeepSeek pairs with banned Chinese tech giant to deliver unbelievably low pricing on AI inference which could cause Nvidia's house of cards to come crashing - Related to banned, giant, inference, crashing, nvidia

Nvidia out? DeepSeek pairs with banned Chinese tech giant to deliver unbelievably low pricing on AI inference which could cause Nvidia's house of cards to come crashing

DeepSeek’s V3 and R1 models are available through Huawei’s Ascend cloud service.

They are powered by the Ascend 910x accelerators banned in the US, EU and UK.

The pricing is much lower than offered by Azure and AWS who have started trialing DeepSeek.

DeepSeek in recent times massively unsettled global markets with the launch of its open reasoning LLM, which was built and trained for a fraction of the cost of models from much larger US competitors, although OpenAI has since accused DeepSeek’s developers of using its models to train theirs.

A new paper had claimed DeepSeek’s V3 LLM was trained on a cluster of just 2,048 Nvidia H800 GPUs - crippled versions of the H100 designed to comply with US export restrictions to China. Rumors around DeepSeek’s newer reasoning model, R1, suggest it may have been trained on as many as 50,000 Nvidia “Hopper” GPUs, including H100, H800, and the newer H20, although DeepSeek hasn’t - and likely won’t - confirm this. If true, it raises serious questions about China’s access to advanced AI hardware despite ongoing trade restrictions, although it’s no secret there’s a thriving black market for advanced Nvidia AI hardware there.

Now, in a move that’s going to further shake Western firms, the South China Morning Post reports Huawei Technologies’ cloud computing unit has partnered with Beijing-based AI infrastructure start-up SiliconFlow to make DeepSeek’s models available to end consumers for an incredibly low price.

This collaboration, which was worked on during the Chinese Lunar New Year holidays, provides efficient, cost-effective access to DeepSeek’s V3 and R1 models through Huawei’s Ascend cloud service, which is powered by Huawei’s own homegrown solutions, including the controversial Ascend 910x accelerators which are banned in the US, UK and Europe.

Huawei has made no secret that it wants to become the Chinese Nvidia, and Huawei Cloud proposes its performance levels are comparable to those of models running on premium global GPUs.

SiliconFlow, which hosts the DeepSeek models, has come out swinging with some aggressive pricing, offering it for 1 yuan (approximately US$[website] per 1 million input tokens and 2 yuan for output tokens with V3, while R1 access is priced at 4 yuan and 16 yuan.

Microsoft added DeepSeek to its Azure AI Foundry a few days ago, and Amazon swiftly followed suit, adding the LLM to its AWS’ Bedrock managed service. AWS showcased the AI model using an [website] instance, powered by eight Nvidia H200 GPUs delivering 1128GB of GPU memory. It’s early days for both cloud offerings though, and they work out much more expensive than SiliconFlow’s super-low pricing.

The collaboration between Huawei, SiliconFlow and DeepSeek highlights China’s broader strategy to strengthen its domestic AI capabilities while reducing reliance on Nvidia hardware.

The South China Morning Post notes, “The move to launch DeepSeek’s models on a homegrown hardware backbone highlights China’s progress in cutting dependency on foreign technology and bolstering its domestic AI industry amid growing efforts by the US to choke off China’s access to high-end chips that the US government noted could be used to advance military aims.”.

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Rumor: Ex-GlobalFoundries Chief Caulfield Could Be Intel's Next CEO

A change in leadership at GlobalFoundries could affect Intel's ongoing CEO hunt as Tim Breen will become GlobalFoundries' new CEO on April 28, 2025, while current CEO Thomas Caulfield will move to Executive Chairman. This switch has got people in the industry talking about whether Caulfield might play a role at Intel or its foundry operations in the future. Caulfield has done well at GlobalFoundries since 2018, he helped the company make money in 2019 by shifting away from making the newest chips to focus on making special semiconductors. This success happened without counting money from selling facilities to ON Semiconductor and Vanguard International Semiconductor.However, some industry experts point out a possible weak spot in Caulfield's background. While he knows a lot about materials science and engineering, he doesn't have much experience designing integrated circuits, &CHIPS . The timing matters a lot for Intel, which has some big tech goals coming up like their new Panther Lake processor set to come out in late 2025 and will use Intel's 18A process node . Both the 18A and 14A nodes need to succeed for Intel's manufacturing future to be strong. Bloomberg reported that Intel is currently focusing on external candidates for its CEO position, among the people under consideration are Marvel's CEO Matt Murphy and Lip-Bow Tan, former Cadence CEO and also a former member of Intel's board.

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ASRock says it’s shifting out of China to avoid U.S. tariffs

Any business that relies on selling electronics to Americans is having a bit of a crisis at the moment. Less than two weeks into the new Trump administration, there’s a new 10 percent tariff on goods from China — which is most consumer goods, period — and it’s set to shoot prices through the roof. ASRock, manufacturer of motherboards and other PC hardware, is feeling the pinch.

The organization told PCMag that it “need[s] some time to transfer the manufacturing to other countries.” Shipments from China via the United States Postal Service were briefly halted on Tuesday, before resuming with huge projected increases in small parcel costs. Cheap goods stores, from independent resellers on markets like Temu and AliExpress, to massive operations like Amazon, will be affected with higher costs across the board.

Vietnam and Taiwan are some potential markets that could offer additional production to electronics manufacturers, but in the meantime market forces won’t let ASRock dramatically raise prices until its competitors do the same. “In the transition period, we may absorb some of the cost and also increase some in price to reflect the increased cost,” the enterprise noted.

Moving manufacturing is never quick or easy, and moving might not even solve the problem in the long term.

After an incredibly accelerated timetable for tariffs on China (which are in addition to several existing tariffs), Trump has threatened to do the same to Taiwan, the world’s most prolific manufacturer of semiconductors. While avoiding specifics, the US president mentioned he could impose tariffs as high as 100 percent to stimulate domestic production of computer chips. Trump has made similar threats to Europe, though he’s postponed a punishing 25 percent tariff on Mexico and Canada, America’s closest trading partner.

In short, there’s no place on Earth ASRock and other electronics companies could move their manufacturing to be truly safe from the whims of a leader who seems to make up policy on the spot. The United States’ CHIPS Act of 2022 has stimulated domestic production from companies like Intel, but modern foundries are so complex that it would take the improved part of a decade to even set up the capacity to create massive amounts of electronics within American borders. And that’s saying nothing of the much higher labor and living costs in the US versus China or Taiwan.

While Trump has targetted China in particular since his first presidential term from 2016-2020, he’s been shown to be more flexible for other markets. The 25 percent hike on all goods from Canada and Mexico is currently on hold for one month to allow for more negotiation, and perhaps not coincidentally, following predictions of a disastrous domestic economic outcome even from Trump’s conservative allies.

Trump has shown himself to be particularly receptive to arguments from big tech’s largest billionaire players, like Elon Musk and Mark Zuckerberg, who not long ago adjusted Facebook to align with the conservative leader’s social policies. Tesla and SpaceX CEO and Twitter/X owner Musk has reportedly been given direct access to the United States’ federal payment systems, causing internal chaos as trillions of dollars in funding appears to be removed from the legal control of Congress.

Responding to the rapid and unpredictable nature of Trump’s economic policy is a tall order. American corporations could exert a lot of influence on the administration, but companies like ASRock will have to be almost entirely reactive, and will likely find the American consumer market an extremely challenging one in the short term.

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