Claude.ai CEO says smuggling tens of thousands of chips is possible but DeepSeek will struggle to smuggle hundreds of thousands and millions of Nvidia chips out of the US. According to him DeepSeek will need them to compete effectively with US AI companies. ``Stay updated on AI and other tech news. Follow Techzim WhatsApp Channel:`` https://whatsapp.com/channel/0029VaS23mO84OmAI88Cwd2q This follows a recent claim by another CEO of an American AI company that DeepSeek is using about 50,000 Nvidia H100s chips smuggled from the US. Smuggled because the US enacted laws to restrict export of AI enabling chips to China, in a bid to slow down its biggest technology rival in the AI race. Said Alexandr Wang the CEO of Scale AI: _“My understanding is that Deepseek has about 50,000 H100s, which they can't talk about obviously because it is against the export controls that the U.S. has put in place._ US companies in the AI value chain lost up to a trillion dollars in valuation on Monday following clear market implications of DeepSeek's approach to building AI models. DeepSeek has effectively demonstrated it can achieve the same results US companies are producing at just a fraction of the cost. Where US companies would use about, say, US $100 million to train an AI model, DeepSeek can achieve the same with just US $5 million. Where US companies need about 100,000 GPUs for a process, DeepSeek uses just 2,000 GPUs for the same results. These achievements have shook the American AI space resulting in AI company CEOs needing to address the situation. It is therefore hard to know whether the claims of smuggling are genuine or not because the panic in the US, especially as AI company valuations fall, would have incentivised the claims to a degree.