DeepSeek's models, although trained on less powerful hardware, are compute-intensive for inference, requiring substantial GPU capacity. The models have fewer parameters than some competitors but are still cheaper to run, attracting firms eager to leverage their capabilities. The demand for H200 chips is driven by the need for high-speed inference and the ability to run the full model efficiently. As DeepSeek's models become more accessible through major cloud platforms, the market is reacting by securing the best GPUs available, indicating a potential long-term increase in demand beyond the initial hype.
Key takeaways:
- Cloud and inference providers are experiencing increased demand for Nvidia H200 chips due to DeepSeek's AI models.
- DeepSeek's open-source models require powerful hardware for inference, driving demand for Nvidia's H200 GPUs.
- Despite Nvidia's stock decline, DeepSeek's model performance has spurred interest and pre-purchases of H200 capacity.
- DeepSeek's models are efficient and cheaper to run, offering a competitive advantage in AI infrastructure.