Latest news with #DeepSeek-induced
Yahoo
01-03-2025
- Business
- Yahoo
China tech startups race to capitalise on DeepSeek fever, Xi's meeting
SHANGHAI/HONG KONG (Reuters) - Chinese technology startups are racing for fresh fundraising to capitalise on the DeepSeek-induced fervor towards artificial intelligence, as well as President Xi Jinping's recent show of support to the country's private enterprises. AI-powered optics startup Rid Vision, brain-computer interface company AI CARE Medical and robot-maker Shanghai Qingbao Engine Robotics are among Chinese tech start-ups seeking fresh onshore financing, venture capitalist Andrew Qian said. "Many people are knocking at the doors of these AI companies, half discussing business cooperation, the other half talking about investment," said Qian, the CEO of New Access Capital, which has invested in the three firms. "You can see from the DeepSeek case, that a batch of Chinese innovators with disruptive technologies is emerging... Previously, Chinese start-ups were nearly all 'me too'", Qian said, referring to copycats. The flurry of roadshows and deal announcements by AI-related businesses - including chipmakers, cloud service providers and AI apps - has breathed new life into the country's moribund venture capital sector. The outlook for exits from investments by venture capital and private equity firms, however, remains clouded by a stringent regulatory vetting of IPOs at home, and heightened Sino-U.S. geopolitical tensions that threaten offshore listings. In the near-term, however, DeepSeek's AI breakthrough and this month's rare meeting between President Xi and tech business leaders have boosted investor sentiment. New Access Capital has recently invested in a chip startup and a maker of millimeter wave antenna, and is planning to invest in a company focused on rocket recovery technologies, betting on the next DeepSeek in these fields, Qian said. Companies that are seen as benefiting from China's AI advancement are the main focus of the latest round of investments. AI image generation platform LibLib AI, for example, announced several hundred million yuan in a new funding round on Monday at what the company called a "record-breaking pace of financing". AI-powered medical startup SenseCare said last week it had raised 100 million yuan, while chipmakers Aspiring and Hyseim also announced fresh fundraising recently. BLEAK PICTURE Other startups that have tapped investors in recent days include AI Infrastructure provider Siliconflow, robot-maker Ruichi Smart Technology and medtech startup Neurodome, according to consultancy Zero2IPO. The pickup in venture capital investment interest comes after bleak performance over the last few years - China venture fundraising and investments have fallen off the cliff since a 2021 peak, Preqin data showed. In 2024, 67 funds raised $12.5 billion, a far cry from 2021's $141 billion. Dollar-denominated funds raised a meagre $1 billion last year, the data showed. Venture deals totalled $229 billion last year, down 36% year-on-year and just over a quarter of 2021's $816 billion. The industry, which relies mainly on IPOs to exit from their investments, suffered from China's introduction of stringent IPO rules, and Sino-U.S. tensions that had hampered offshore listings by Chinese companies. Since the launch of DeepSeek's breakthrough AI model, "the sentiment has improved a lot," said Huo Zhongyan, founder of Bonanza Capital, which has invested in an AI-powered garment designing and marketing startup. "People get more sanguine about China's future ... Stock bullishness made entrepreneurs more confident, and investors more willing to place bets." Morgan Stanley said on Tuesday that it sees signals of normalising IPOs in the A-share market. But Huo doubts Chinese regulators will loosen IPO criteria any time soon, also cautioning that offshore listings, which have shown signs of recovery, are vulnerable to geopolitical winds and fluid market mood. Sign in to access your portfolio
Reuters
27-02-2025
- Business
- Reuters
China tech startups race to capitalise on DeepSeek fever, Xi's meeting
SHANGHAI/HONG KONG, Feb 28 (Reuters) - Chinese technology startups are racing for fresh fundraising to capitalise on the DeepSeek-induced fervor towards artificial intelligence, as well as President Xi Jinping's recent show of support to the country's private enterprises. AI-powered optics startup Rid Vision, brain-computer interface company AI CARE Medical and robot-maker Shanghai Qingbao Engine Robotics are among Chinese tech start-ups seeking fresh onshore financing, venture capitalist Andrew Qian said. "Many people are knocking at the doors of these AI companies, half discussing business cooperation, the other half talking about investment," said Qian, the CEO of New Access Capital, which has invested in the three firms. "You can see from the DeepSeek case, that a batch of Chinese innovators with disruptive technologies is emerging... Previously, Chinese start-ups were nearly all 'me too'", Qian said, referring to copycats. The flurry of roadshows and deal announcements by AI-related businesses - including chipmakers, cloud service providers and AI apps - has breathed new life into the country's moribund venture capital sector. The outlook for exits from investments by venture capital and private equity firms, however, remains clouded by a stringent regulatory vetting of IPOs at home, and heightened Sino-U.S. geopolitical tensions that threaten offshore listings. In the near-term, however, DeepSeek's AI breakthrough and this month's rare meeting between President Xi and tech business leaders have boosted investor sentiment. New Access Capital has recently invested in a chip startup and a maker of millimeter wave antenna, and is planning to invest in a company focused on rocket recovery technologies, betting on the next DeepSeek in these fields, Qian said. Companies that are seen as benefiting from China's AI advancement are the main focus of the latest round of investments. AI image generation platform LibLib AI, for example, announced several hundred million yuan in a new funding round on Monday at what the company called a "record-breaking pace of financing". AI-powered medical startup SenseCare said last week it had raised 100 million yuan, while chipmakers Aspiring and Hyseim also announced fresh fundraising recently. BLEAK PICTURE Other startups that have tapped investors in recent days include AI Infrastructure provider Siliconflow, robot-maker Ruichi Smart Technology and medtech startup Neurodome, according to consultancy Zero2IPO. The pickup in venture capital investment interest comes after bleak performance over the last few years - China venture fundraising and investments have fallen off the cliff since a 2021 peak, Preqin data showed. In 2024, 67 funds raised $12.5 billion, a far cry from 2021's $141 billion. Dollar-denominated funds raised a meagre $1 billion last year, the data showed. Venture deals totalled $229 billion last year, down 36% year-on-year and just over a quarter of 2021's $816 billion. The industry, which relies mainly on IPOs to exit from their investments, suffered from China's introduction of stringent IPO rules, and Sino-U.S. tensions that had hampered offshore listings by Chinese companies. Since the launch of DeepSeek's breakthrough AI model, "the sentiment has improved a lot," said Huo Zhongyan, founder of Bonanza Capital, which has invested in an AI-powered garment designing and marketing startup. "People get more sanguine about China's future ... Stock bullishness made entrepreneurs more confident, and investors more willing to place bets." Morgan Stanley said on Tuesday that it sees signals of normalising IPOs in the A-share market. But Huo doubts Chinese regulators will loosen IPO criteria any time soon, also cautioning that offshore listings, which have shown signs of recovery, are vulnerable to geopolitical winds and fluid market mood.
Zawya
25-02-2025
- Business
- Zawya
Nvidia's H20 chip orders jump as Chinese firms adopt DeepSeek's AI models, sources say
SINGAPORE/BEIJING: Chinese companies are ramping up orders for Nvidia's H20 artificial intelligence chip due to booming demand for DeepSeek's low-cost AI models, six people familiar with the matter said. The surge in orders, which is being reported for the first time by Reuters, underlines Nvidia's dominance of the market and could help alleviate concerns that DeepSeek might cause a slide in AI chip demand. Tencent, Alibaba and ByteDance have "significantly increased" orders of the H20 - a chip specific to China due to U.S. export controls - since the Chinese AI startup burst into the global public consciousness last month, two of the people said. In addition to their internal needs for advanced AI chips, the three tech giants provide cloud computing services through which other firms can access and use AI tools. Smaller companies in sectors like healthcare and education are also purchasing AI servers equipped with DeepSeek models and Nvidia H20 chips, said a source at one of China's largest server makers. Previously only deep-pocketed financial and telecoms firms bought servers with AI computing systems, the source added. U.S. President Donald Trump's administration is looking at imposing restrictions on the sale of the H20 chip to China, Reuters has reported. While the threat of further controls could be a factor in the jump in orders, the sources cited DeepSeek as the reason. The sources did not provide details on the size of the orders. They were not authorised to speak to media and declined to be identified. Nvidia did not respond to queries on how much demand for the H20 it was seeing from China but said its products won "on merit in a competitive field". The company is set to report quarterly earnings on Wednesday. Tencent, ByteDance and Alibaba did not respond to requests for comment. DeepSeek's large language models rival Western systems in performance at a fraction of the cost as they focus on "inference" or producing conclusions. That optimises computational efficiency rather than relying solely on raw processing power. "When DeepSeek launched, many misjudged that computing power demand might stagnate or decrease. In reality, more advanced AI models drive deeper integration into daily life, exponentially increasing inference-level compute need," said Nori Chiou, investment director at Singapore-based White Oak Capital Partners. A DeepSeek-induced global rout in AI stocks that began January 24 saw Nvidia shares lose as much as a fifth of their value at one point but they have since regained most of that ground and are down just 3% for the year to date. Though wider deployment of DeepSeek AI models is expected to help Chinese chipmakers such as Huawei better compete in the domestic market thanks to the models' focus on inference, Nvidia's H20 chip remains the industry standard in China. Analysts estimate Nvidia shipped approximately 1 million H20 units in 2024, generating over $12 billion in revenue for the company. The H20 is the primary chip Nvidia is legally permitted to sell in China and was launched after the latest round of U.S. export restrictions took effect in October 2023. Washington has banned exports of Nvidia's most advanced chips to China since 2022, concerned that advanced technologies could be used by China to build up its military capabilities. Numerous Chinese companies have announced plans to use DeepSeek's models. Among them are Tencent, which has said it will beta test integrating the models into its highly popular WeChat messaging app, and automaker Great Wall which has integrated DeepSeek's model into its connected vehicle system. (Reporting by Fanny Potkin in Singapore, Che Pan in Beijing and Brenda Goh in Shanghai; Editing by Edwina Gibbs)
Yahoo
25-02-2025
- Business
- Yahoo
Nvidia's H20 chip orders jump as Chinese firms adopt DeepSeek's AI models, sources say
By Fanny Potkin and Che Pan SINGAPORE/BEIJING (Reuters) - Chinese companies are ramping up orders for Nvidia's H20 artificial intelligence chip due to booming demand for DeepSeek's low-cost AI models, six people familiar with the matter said. The surge in orders, which is being reported for the first time by Reuters, underlines Nvidia's dominance of the market and could help alleviate concerns that DeepSeek might cause a slide in AI chip demand. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. Tencent, Alibaba and ByteDance have "significantly increased" orders of the H20 - a chip specific to China due to U.S. export controls - since the Chinese AI startup burst into the global public consciousness last month, two of the people said. In addition to their internal needs for advanced AI chips, the three tech giants provide cloud computing services through which other firms can access and use AI tools. Smaller companies in sectors like healthcare and education are also purchasing AI servers equipped with DeepSeek models and Nvidia H20 chips, said a source at one of China's largest server makers. Previously only deep-pocketed financial and telecoms firms bought servers with AI computing systems, the source added. U.S. President Donald Trump's administration is looking at imposing restrictions on the sale of the H20 chip to China, Reuters has reported. While the threat of further controls could be a factor in the jump in orders, the sources cited DeepSeek as the reason. The sources did not provide details on the size of the orders. They were not authorised to speak to media and declined to be identified. Nvidia did not respond to queries on how much demand for the H20 it was seeing from China but said its products won "on merit in a competitive field". The company is set to report quarterly earnings on Wednesday. Tencent, ByteDance and Alibaba did not respond to requests for comment. DeepSeek's large language models rival Western systems in performance at a fraction of the cost as they focus on "inference" or producing conclusions. That optimises computational efficiency rather than relying solely on raw processing power. "When DeepSeek launched, many misjudged that computing power demand might stagnate or decrease. In reality, more advanced AI models drive deeper integration into daily life, exponentially increasing inference-level compute need," said Nori Chiou, investment director at Singapore-based White Oak Capital Partners. A DeepSeek-induced global rout in AI stocks that began January 24 saw Nvidia shares lose as much as a fifth of their value at one point but they have since regained most of that ground and are down just 3% for the year to date. Though wider deployment of DeepSeek AI models is expected to help Chinese chipmakers such as Huawei better compete in the domestic market thanks to the models' focus on inference, Nvidia's H20 chip remains the industry standard in China. Analysts estimate Nvidia shipped approximately 1 million H20 units in 2024, generating over $12 billion in revenue for the company. The H20 is the primary chip Nvidia is legally permitted to sell in China and was launched after the latest round of U.S. export restrictions took effect in October 2023. Washington has banned exports of Nvidia's most advanced chips to China since 2022, concerned that advanced technologies could be used by China to build up its military capabilities. Numerous Chinese companies have announced plans to use DeepSeek's models. Among them are Tencent, which has said it will beta test integrating the models into its highly popular WeChat messaging app, and automaker Great Wall which has integrated DeepSeek's model into its connected vehicle system.
Reuters
25-02-2025
- Business
- Reuters
Exclusive: Nvidia's H20 chip orders jump as Chinese firms adopt DeepSeek's AI models, sources say
SINGAPORE/BEIJING, Feb 25 (Reuters) - Chinese companies are ramping up orders for Nvidia's (NVDA.O), opens new tab H20 artificial intelligence chip due to booming demand for DeepSeek's low-cost AI models, six people familiar with the matter said. The surge in orders, which is being reported for the first time by Reuters, underlines Nvidia's dominance of the market and could help alleviate concerns that DeepSeek might cause a slide in AI chip demand. Tencent ( opens new tab, Alibaba ( opens new tab and ByteDance have "significantly increased" orders of the H20 - a chip specific to China due to U.S. export controls - since the Chinese AI startup burst into the global public consciousness last month, two of the people said. In addition to their internal needs for advanced AI chips, the three tech giants provide cloud computing services through which other firms can access and use AI tools. Smaller companies in sectors like healthcare and education are also purchasing AI servers equipped with DeepSeek models and Nvidia H20 chips, said a source at one of China's largest server makers. Previously only deep-pocketed financial and telecoms firms bought servers with AI computing systems, the source added. U.S. President Donald Trump's administration is looking at imposing restrictions on the sale of the H20 chip to China, Reuters has reported. While the threat of further controls could be a factor in the jump in orders, the sources cited DeepSeek as the reason. The sources did not provide details on the size of the orders. They were not authorised to speak to media and declined to be identified. Nvidia did not respond to queries on how much demand for the H20 it was seeing from China but said its products won "on merit in a competitive field". The company is set to report quarterly earnings on Wednesday. Tencent, ByteDance and Alibaba did not respond to requests for comment. DeepSeek's large language models rival Western systems in performance at a fraction of the cost as they focus on "inference" or producing conclusions. That optimises computational efficiency rather than relying solely on raw processing power. "When DeepSeek launched, many misjudged that computing power demand might stagnate or decrease. In reality, more advanced AI models drive deeper integration into daily life, exponentially increasing inference-level compute need," said Nori Chiou, investment director at Singapore-based White Oak Capital Partners. A DeepSeek-induced global rout in AI stocks that began January 24 saw Nvidia shares lose as much as a fifth of their value at one point but they have since regained most of that ground and are down just 3% for the year to date. Though wider deployment of DeepSeek AI models is expected to help Chinese chipmakers such as Huawei( better compete in the domestic market thanks to the models' focus on inference, Nvidia's H20 chip remains the industry standard in China. Analysts estimate Nvidia shipped approximately 1 million H20 units in 2024, generating over $12 billion in revenue for the company. The H20 is the primary chip Nvidia is legally permitted to sell in China and was launched after the latest round of U.S. export restrictions took effect in October 2023. Washington has banned exports of Nvidia's most advanced chips to China since 2022, concerned that advanced technologies could be used by China to build up its military capabilities. Numerous Chinese companies have announced plans to use DeepSeek's models. Among them are Tencent, which has said it will beta test integrating the models into its highly popular WeChat messaging app, and automaker Great Wall ( opens new tab which has integrated DeepSeek's model into its connected vehicle system.
