DeepSeek is preparing to release a new AI chip, fully developed and manufactured in China. This could seriously impact cryptocurrencies and the American companies that support them.
Trump's trade policy prompted China to create its own hardware solutions for AI. Even if this chip lags behind Nvidia's products, it could still displace the American company from the Chinese market.
New AI chip from DeepSeek
When DeepSeek launched its LLM in January, it changed the AI and cryptocurrency markets. Now, as OpenAI founder Sam Altman speaks about a bubble in the market and Meta downsizes its AI division, new upheavals can be expected.
Therefore, DeepSeek's recent announcement about the upcoming release of a new AI chip is causing concern in the market.
According to reports from the company on social media, this chip will be fully Chinese: developed and manufactured in China without the involvement of major international supply chains.
DeepSeek's AI software has disrupted the operations of US competitors like OpenAI. These indirect connections negatively affect cryptocurrency prices. In the hardware sector, chip maker Nvidia is closely linked to cryptocurrency markets.
Currently, Nvidia's two main focuses are AI processing and cryptocurrency mining, so some companies are operating in both areas simultaneously.
The possibility that DeepSeek could disrupt the American AI market has crashed Nvidia and miner stocks, but the chip replacement could pose an even more serious threat.
