DeepSeek's R2 model, initially set to launch in May, has faced significant delays due to a shortage of Nvidia server chips in China.

This chip shortage has been exacerbated by recent U.S. export restrictions on Nvidia's H20 processors, which were specifically developed for the Chinese market.

The U.S. government imposed these restrictions in mid-April, impacting the availability of critical processors needed for AI training and inference.

As a result, many Chinese firms have turned to gaming GPUs like the RTX 4090 as alternatives, although these are also restricted and often accessed through black markets.

DeepSeek's reliance on Nvidia's hardware highlights the vulnerability of Chinese AI companies to U.S. policy decisions, complicating their operational capabilities.

The shortage of H20 processors is not only hindering the usage of DeepSeek's existing R1 model but also complicating preparations for the R2 launch.

This situation underscores the intersection of technological performance and geopolitical challenges faced by tech companies today.

The delay of R2 illustrates the broader implications of global supply chain dependencies and the need for strategic alliances in the tech industry.

Despite collaborating with major Chinese cloud providers to prepare for R2 deployment, DeepSeek's ability to meet demand remains uncertain due to the chip restrictions.

The success of R2 may depend on the remaining supply of H20 chips in China, following a surge in orders worth $16 billion from major tech companies.

DeepSeek has attempted to circumvent these restrictions by sourcing chips through shell companies, but these efforts have not yielded success.

While alternatives like Huawei exist, DeepSeek cannot depend solely on them for the large-scale deployment of its AI technology.