Summary of DeepSeek and the AI Chip Industry Conference Call Industry and Company Overview - The conference call focuses on the AI chip industry, specifically discussing DeepSeek's new U18M Zero IP8 format and its implications for domestic AI chip development and training efficiency. Key Points and Arguments Introduction of U18M Zero IP8 Format - DeepSeek has defined the U18M Zero IP8 format to establish a new standard for domestic chips, aiming to reduce training memory usage by 20%-30% and improve training efficiency by 30%-40% [1][2] - This new format is expected to guide the design of the next generation of domestic chips and may expand into the RP8 protocol standard through OCP [1][2] Training and Inference Efficiency - The U18M Zero IP8 format optimizes memory usage and computational overhead by splitting weight data into smaller blocks, thus enhancing training and inference efficiency while maintaining high precision [4] - The SP8 data format is anticipated to significantly improve the training efficiency of domestic large models, helping to close the gap with international leaders [6][7] Current Challenges in Domestic AI Chips - Domestic AI chips face challenges such as insufficient operator coverage (approximately 50%), gradient quantization errors, and immature tensor expansion [8][9] - Full-scale application of these technologies is expected to take until Q2 or Q3 of the following year [8] Future Developments and Market Impact - The introduction of FP8 format in inference will lower costs and is expected to be implemented rapidly in domestic chips within the next six months to a year [8] - However, no domestic manufacturer can independently complete training tasks yet, with significant technical hurdles remaining [8][10] Mixed Precision Strategy - DeepSeek employs a mixed precision strategy to balance performance and precision, retaining high precision for sensitive parameters while using the new U18M Zero IP8 format for less sensitive ones [5] Competitive Landscape - DBC V3.1 version introduces mixed inference capabilities and enhances agent abilities, with a significant increase in the dataset size to 840 billion tokens, improving understanding of long texts and code [3][25] - Compared to international models like GPT-5 and Claude 4, DBC V3.1 ranks among the top six globally, indicating strong competitiveness [26][27] Multi-Modal Transition - By Q1 2026, leading domestic AI models are expected to transition into the multi-modal era, requiring high-performance computing resources [30] - The integration of different modalities will necessitate re-training and will increase the demand for training equipment [30] Long-Term Outlook - The adoption of new data formats and standards is a gradual process, with significant changes expected over the next year, particularly in hardware support for FP8 [10][11] - The industry is moving towards a more standardized approach to avoid fragmentation, with major manufacturers leading the charge [10] Additional Important Insights - The current strategy involves maximizing the potential of existing hardware while preparing for the transition to new formats [19] - The impact of new formats on model training methods will require substantial adjustments and a phased approach to implementation [15][16] - The FP8 format has limitations in high-precision fields such as finance and medicine, indicating a need for careful application [23][24] This summary encapsulates the critical insights from the conference call, highlighting the advancements and challenges within the domestic AI chip industry and the strategic direction of DeepSeek.

Group 1: Central Budget Investment - The central budget investment of 735 billion yuan has been largely allocated, focusing on modern industrial systems, infrastructure, new urbanization, rural revitalization, regional development, green development, and social welfare projects [1] - This year's investment direction has been optimized, increasing support for social welfare and reducing the financial burden on local governments [1][2] - The early allocation of central budget investment reflects a proactive fiscal policy in response to economic pressures, particularly in the real estate sector and insufficient domestic demand [1] Group 2: Economic Performance of Central Provinces - The economic performance of six central provinces shows a positive trend, with five provinces exceeding the national growth rate of 5.3% [3] - Hubei province leads with a GDP growth rate of 6.2%, while Henan follows at 5.7%, indicating strong investment, consumption, and export activities [3][4] - The economic disparity among these provinces is notable, with Shanxi facing challenges due to its reliance on coal and a less favorable business environment [4] Group 3: U.S. Manufacturing and Services Sector - The U.S. Markit manufacturing PMI fell to 49.5, indicating contraction, while the services PMI rose to 55.2, reflecting a divergence in economic performance [5][6] - The overall economic growth in the U.S. is uneven, with the services sector supporting growth despite manufacturing challenges [7] Group 4: Bank Deposit Rates - Average interest rates for short-term deposits have dropped significantly, with 3-month deposit rates entering the "0" range [8] - The decline in deposit rates is linked to a broader trend of decreasing loan rates, impacting banks' profitability [9] Group 5: Intel's Financial Performance - Intel reported a second-quarter revenue of $12.9 billion but faced a significant loss of $2.9 billion, a 81% increase in losses year-over-year [10] - The new CEO has shifted the company's strategy away from aggressive expansion, focusing on confirmed customer orders for future investments [10][11] Group 6: Country Garden's Debt Restructuring - Country Garden is expected to complete its overseas debt restructuring by the end of the year, having reached an agreement with bondholders for a $178 million compensation payment [12][13] - The restructuring plan has gained support from over 75% of bondholders, providing the company with a critical opportunity to alleviate its debt burden [13] Group 7: Chinese Companies Listing in the U.S. - There has been a significant increase in Chinese companies listing in the U.S., with 50 companies going public this year, a 78.57% increase from last year [14][15] - Despite the increase in listings, the total fundraising amount has decreased by 57.91%, indicating a shift in the fundraising landscape [14] Group 8: Stock Market Performance - The stock market experienced fluctuations, with the Shanghai Composite Index closing down 0.33% amid mixed sector performance [16][17] - The market is showing signs of increased activity, with a notable rise in trading volume and a rotation of sector performance [17]

Core Insights - The "2025 Second High-Performance Chip Developers Forum and Chip Thermal Management Technology Exchange Conference" will be held on May 22-23 in Beijing, focusing on domestic AI chip progress, safety, packaging technology, thermal design, and cooling techniques [1][4]. Event Overview - The forum will feature over 20 presentations and is expected to attract more than 300 industry experts [1]. - Key topics include AI chip critical technologies, packaging techniques, and efficient cooling technologies [5]. Confirmed Speakers and Topics - Tsinghua University: Cross-Scale Thermal Management of Electronic Systems [7] - ZTE Corporation: Discussion on High-Power Chip Cooling [7] - Chipmore Technology: Challenges in 3DIC Cooling and Micro-Nano Scale Heat Transfer Assessment [7] - Shanghai Birun Technology: Instant Overcurrent Protection and Dynamic Power Control for GPU Chip Stability [7] - Ansys: Topic to be confirmed [7] - Beijing Horizon Information Technology: Thermal Design and Challenges of Intelligent Driving Domain Controllers [7] - China Academy of Microelectronics: High Heat Flux Cooling Technology for High-Performance Chips [7] - Other notable companies include NVIDIA, Huada Semiconductor, and Unisoc, with topics pending confirmation [7]. Participation Details - Registration fee for attendees is 2500 RMB per person, which includes learning materials and access to a dedicated community [9]. - Options for exhibition and speaking opportunities are available, including a 30-minute presentation slot [9].