08:22 AM EDT, 06/27/2025 (MT Newswires) -- Nvidia ( NVDA ) chip restrictions by the US government may have curbed DeepSeek's rise for the time being, The Information reported early Thursday, citing two sources with knowledge of the situation.

The recent US ban on exporting Nvidia's ( NVDA ) H20 chips to China may have slowed down the country's adoption of DeepSeek's upcoming large language model R2, which has not been given a launch date yet, the report said.

DeepSeek's models are fully optimized for Nvidia's ( NVDA ) hardware and software, and running them with Chinese chips makes them harder to manage and less efficient, the report cited employees at some Chinese cloud companies as saying.

DeepSeek has been working with some Chinese cloud companies regarding plans for R2's release, including allocating enough H20 chips for those who want to use the full-size version of the large language model, the report said.

DeepSeek and Nvidia ( NVDA ) did not immediately reply to a request for comment from MT Newswires.