Key Points
Advanced Micro Devices (NASDAQ: AMD) saw its stock decline nearly 7% on October 3, 2023, following reports that Chinese AI company DeepSeek plans to develop its own AI chips. This move could threaten AMD and its competitor Nvidia’s market positions if DeepSeek’s processors gain traction.
According to Reuters, DeepSeek is focusing on creating chips designed for inference, a crucial phase in AI development where models provide responses to queries. While AMD and Nvidia have not commented on the situation, the potential launch of a proprietary chip by DeepSeek is being observed closely due to its implications for the broader AI hardware market.
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