DeepSeek is planning to release a new chip for AI software, purportedly developed and manufactured entirely within China. This could have cascading implications for crypto and the US firms that bolster it.

Specifically, Trump’s trade war policies pushed China to develop independent AI hardware solutions. Even if this chip is inferior to Nvidia’s, it could still force the US firm out of the entire Chinese market.

DeepSeek’s New AI Chip

When DeepSeek publicly released its LLM in January, it had a transformative impact on both the AI and crypto markets. Now that OpenAI founder Sam Altman declared a bubble in the market and Meta began downsizing its AI division, we may be ripe for another disruption.

For these reasons, DeepSeek’s recent announcement that it’s about to release a new next-gen AI chip is creating some real market anxiety.

According to the firm’s social media posts, this new chip will be fully Chinese: designed by Chinese firms and manufactured domestically without massive international supply chains.

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Author: Landon Manning

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