Chinese Firms Turn to DeepSeek API Amid Centralized GPU Controls
Florian Brand claims centralized GPU control forces API reliance.
Entities: Florian Brand, DeepSeek, K3
A small exchange on X is making a broader claim about China's AI market. Investor and X user @xeophon argued that Chinese companies may be unable, or not allowed, to self-host open models like K3 because GPU access is concentrated in a few hands, pushing them toward providers like DeepSeek via API access, as he put it in a related reply. He also argued this could leave Chinese AI firms looking more like Western closed labs than open-model vendors.
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Chinese Firms Turn to DeepSeek API Amid Centralized GPU Controls
Florian Brand claims centralized GPU control forces API reliance.
Entities: Florian Brand, DeepSeek, K3
A small exchange on X is making a broader claim about China's AI market. Investor and X user @xeophon argued that Chinese companies may be unable, or not allowed, to self-host open models like K3 because GPU access is concentrated in a few hands, pushing them toward providers like DeepSeek via API access, as he put it in a related reply. He also argued this could leave Chinese AI firms looking more like Western closed labs than open-model vendors.
@xlr8harder @tenobrus If you are a CN company, how would you run K3 yourself? You simply can’t, cause GPUs are in the hands of few companies which is centrally controlled. So you pay DeepSeek for their API
Commentary on X
@xeophon This take is correct. The state doesn't care much about API usage, that's more of a commercial issue for Alibaba and the like. They care about the development of the AI industry (big picture economy ROI) and the soft power (politics) that comes with it. https://x.com/teortaxesTex/status/2078020752918327800?s=20
Cause no one in CN will be able or allowed to self-host and run the open models, there’s no difference for these companies compared to western closed labs. Their TAM is then “just” the 1.4B ppl domestic market, while also pressuring the global one. Doesn’t sound too bad.