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DeepSeek’s upcoming large language model R2 may face adoption challenges in China due to shortages of Nvidia (NASDAQ:NVDA) server chips, according to a report by The Information on Wednesday.

DeepSeek’s primary strategy is built on open-sourcing its models. While competitors like OpenAI and Anthropic keep their most powerful models proprietary, DeepSeek makes its code publicly available.

DeepSeek is just one of several highly ambitious startups known as China’s “Little Dragons.” This elite group includes MiniMax, Moonshot AI, and 01.AI, many of which are backed by China’s ...