DeepSeek, a prominent AI firm, has reportedly stalled the launch of its highly anticipated R2 model, the successor to its R1 reasoning model, due to dissatisfaction with its current performance. CEO Liang Wenfeng has withheld approval for the release, prompting DeepSeek’s engineers to continue refining the model.
The R2 model was initially slated for a May release, with ambitious goals to significantly enhance coding capabilities and improve reasoning across multiple languages, extending beyond English. However, CEO Wenfeng’s decision to halt the launch underscores the company’s commitment to delivering a product that meets rigorous internal performance standards.
Beyond internal refinements, the widespread adoption of DeepSeek’s R2 faces a significant external hurdle: a critical shortage of Nvidia server chips in China. This scarcity stems from stringent U.S. export regulations that, since April, have prevented Nvidia from selling its H20 chips—which were previously the only AI processors legally exportable to China—in the Chinese market.
Industry observers fear that a surge in demand for R2 could overwhelm Chinese cloud providers, who rely heavily on these advanced Nvidia chips to power and distribute large AI models. DeepSeek is proactively addressing this challenge by engaging in ongoing communication with Chinese cloud companies, providing them with necessary technical specifications to prepare for hosting and distributing the R2 model once it receives the green light for release.
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