SMRTR AIAug 16, 2025TechRadar

Chaos at DeepSeek as R2 launch crashes into hardware problems – rivals gain huge advantage

SMRTR summary

DeepSeek's R2 AI model launch faces significant delays due to technical problems with Huawei's Ascend chips, forcing the company to revert to Nvidia hardware for training despite government pressure to use domestic processors. This setback has allowed competitor Alibaba's Qwen3 to gain advantage by adopting DeepSeek's algorithms while improving them, highlighting the practical challenges in China's push for AI self-sufficiency.

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