US Launches Probe on Potential DeepSeek-Nvidia Link
Jan 31, 2025
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Catherine Thorbecke, an Asia Tech columnist for Bloomberg Opinion, delves into the U.S. investigation surrounding DeepSeek and its suspected acquisition of Nvidia chips. She highlights the implications for global tech innovation and U.S.-China relations. David Aspell shares insights into the macroeconomic landscape, discussing market volatility and investment strategies. Bill Adams, Chief Economist at Comerica Bank, analyzes the U.S. economy, the Federal Reserve's future actions, and the resilience of Asian markets amidst changing economic policies.
The US is probing DeepSeek for potentially circumventing restrictions on advanced Nvidia semiconductors, raising concerns about illegal tech acquisitions.
DeepSeek's significant advancements in AI challenge Western perceptions of Chinese technology, highlighting resilience and innovation amidst geopolitical tensions.
Deep dives
Investigation into DeepSeek's Chip Acquisition
American officials are investigating whether the Chinese AI startup DeepSeek circumvented restrictions on advanced NVIDIA semiconductors. DeepSeek's use of older NVIDIA chips prior to the export controls raises questions about potential illegal acquisition of newer, more powerful chips through third-party channels. This investigation comes as DeepSeek has demonstrated significant AI advancements that challenge the narrative of Western superiority in technology. Despite the scrutiny, DeepSeek's ability to innovate under restrictions highlights the resilience of the Chinese tech sector.
Implications of OpenAI and Intellectual Property Concerns
Microsoft is examining whether DeepSeek improperly utilized outputs from OpenAI's models to train its own, which could violate usage agreements. This situation brings irony to OpenAI’s position since it has historically used material from the internet without explicit consent, raising questions about its advocacy for intellectual property rights. The unfolding investigation not only challenges DeepSeek but also puts OpenAI in a precarious light, highlighting the complex dynamics of innovation and legality in AI development. Such scrutiny reveals the ongoing tension between Western tech giants and emerging competitors in the AI space.
DeepSeek's Model and China's AI Development
DeepSeek's recent AI model release signifies a notable advancement in China's technology landscape, countering Western assumptions of Chinese inferiority in innovation. By developing a reasoning model comparable to those from OpenAI, DeepSeek surprises many who believed the U.S. would maintain a significant lead in AI. This development underscores the need to reevaluate preconceived notions about the nature of innovation in China, influenced by linguistic and informational barriers. As global competition in AI intensifies, the implications of such breakthroughs extend beyond just technological advancements, impacting geopolitical narratives and market dynamics.
On today's episode, we get the latest on DeepSeek after news that US officials are probing whether the Chinese AI startup bought advanced Nvidia semiconductors through third parties in Singapore. We speak with Catherine Thorbecke, Asia Tech Columnist for Bloomberg Opinion. We'll also take a look at the global macro landscape with David Aspell, Co-Chief Investment Officer at Mount Lucas Management. Plus - a discussion on the Fed's path ahead with Bill Adams, Chief Economist at Comerica Bank.