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NVIDIA H20 Chip Shortage Delays DeepSeek R2 Launch

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The launch of DeepSeek’s upcoming model, R2, could face significant setbacks in China as US export restrictions choke the supply of NVIDIA’s H20 chips, critical for running the company’s AI models, reported The Information

R2, the successor to DeepSeek’s widely used R1, has yet to receive a release date. The report added that CEO Liang Wenfeng is unsatisfied with its performance, and engineers continue to work on improvements before it is cleared for launch.

Cloud providers that host and distribute DeepSeek’s models warn that existing inventories of NVIDIA chips will likely fall short of meeting the demand R2 could generate, particularly if it performs better than current open-source alternatives. 

These concerns have intensified following the April ban on NVIDIA’s H20 chip, which was specifically built for the Chinese market after earlier export restrictions barred the sale of more powerful Hopper series GPUs.

During the recent earnings call, NVIDIA CFO Colette Kress said the company’s outlook reflects a loss of approximately $8 billion in H20 revenue for the second quarter.

R1 and R2 are tightly optimised to run on NVIDIA’s architecture, making substitution with Chinese-developed chips difficult and inefficient. 

According to the report, employees at Chinese cloud companies said DeepSeek’s models “are so completely optimised for NVIDIA’s hardware and software” that deploying them on domestic alternatives is not viable at scale.

Despite the ban, some Chinese companies have found a workaround to obtain NVIDIA hardware. 

According to The Wall Street Journal, engineers from Chinese AI companies are heading to Kuala Lumpur, Malaysia, with hard drives packed with instructions and data to train AI models. They then utilise the NVIDIA chips available at Malaysian data centres to train the model and return it to China. 

Meanwhile, to cope with chip shortages, some Chinese firms have resorted to using gaming GPUs like NVIDIA’s RTX 5090 and 4090, which are also under export restrictions but easier to obtain through grey markets.

DeepSeek, backed by hedge fund firm High-Flyer Capital Management, made headlines for training R1 with less compute than US competitors like OpenAI.

In response to the surge in R1 usage, major Chinese tech firms, including ByteDance, Alibaba, and Tencent, placed $16 billion worth of orders for 1.2 million H20 chips in early 2025, according to SemiAnalysis estimates. That compares with the 1 million chips shipped to China by NVIDIA last year.

Despite these efforts, the scalability of R2 in China could be limited. Companies outside China, not constrained by US chip curbs, may find it easier to deploy the model at full scale.



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Piyush Goyal Announces Second Tranche of INR 10,000 Cr Deep Tech Fund

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IIT Madras and its alumni association (IITMAA) held the sixth edition of their global innovation and alumni summit, ‘Sangam 2025’, in Bengaluru on 4 and 5 July. The event brought together over 500 participants, including faculty, alumni, entrepreneurs, investors and students.

Union Commerce and Industry Minister Shri Piyush Goyal, addressing the summit, announced a second tranche of ₹10,000 crore under the government’s ‘Fund of Funds’, this time focused on supporting India’s deep tech ecosystem. “This money goes to promote innovation, absorption of newer technologies and development of contemporary fields,” he said. 

The Minister added that guidelines for the fund are currently being finalised, to direct capital to strengthen the entire technology lifecycle — from early-stage research through to commercial deployment, not just startups.. 

He also referred to the recent Cabinet decision approving $12 billion (₹1 lakh crore) for the Department of Science and Technology in the form of a zero-interest 50-year loan. “It gives us more flexibility to provide equity support, grant support, low-cost support and roll that support forward as technologies get fine-tuned,” he said.

Goyal said the government’s push for indigenous innovation stems from cost advantages as well. “When we work on new technologies in India, our cost is nearly one-sixth, one-seventh of what it would cost in Switzerland or America,” he said.

The Minister underlined the government’s focus on emerging technologies such as artificial intelligence, machine learning, and data analytics. “Today, our policies are structured around a future-ready India… an India that is at the forefront of Artificial Intelligence, Machine Learning, computing and data analytics,” he said.

He also laid out a growth trajectory for the Indian economy. “From the 11th largest GDP in the world, we are today the fifth largest. By the end of Calendar year 2025, or maybe anytime during the year, we will be the fourth-largest GDP in the world. By 2027, we will be the third largest,” Goyal said.

Sangam 2025 featured a pitch fest that saw 20 deep tech and AI startups present to over 250 investors and venture capitalists. Selected startups will also receive institutional support from the IIT Madras Innovation Ecosystem, which has incubated over 500 ventures in the last decade.

Key speakers included Aparna Chennapragada (Chief Product Officer, Microsoft), Srinivas Narayanan (VP Engineering, OpenAI), and Tarun Mehta (Co-founder and CEO, Ather Energy), all IIT Madras alumni. The summit also hosted Kris Gopalakrishnan (Axilor Ventures, Infosys), Dr S. Somanath (former ISRO Chairman) and Bengaluru South MP Tejasvi Surya.

Prof. V. Kamakoti, Director, IIT Madras, said, “IIT Madras is committed to playing a pivotal role in shaping ‘Viksit Bharat 2047’. At the forefront of its agenda are innovation and entrepreneurship, which are key drivers for National progress.”

Ms. Shyamala Rajaram, President of IITMAA, said, “Sangam 2025 is a powerful confluence of IIT Madras and its global alumni — sparking bold conversations on innovation and entrepreneurship.”

Prof. Ashwin Mahalingam, Dean (Alumni and Corporate Relations), IIT Madras, added, “None of this would be possible without the unwavering support of our alumni community. Sangam 2025 embodies the strength of that network.”



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Serve Machine Learning Models via REST APIs in Under 10 Minutes

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SServe Machine Learning Models via REST APIs in Under 10 Minutes
Image by Author | Canva

 

If you like building machine learning models and experimenting with new stuff, that’s really cool — but to be honest, it only becomes useful to others once you make it available to them. For that, you need to serve it — expose it through a web API so that other programs (or humans) can send data and get predictions back. That’s where REST APIs come in.

In this article, you will learn how we’ll go from a simple machine learning model to a production-ready API using FastAPI, one of Python’s fastest and most developer-friendly web frameworks, in just under 10 minutes. And we won’t just stop at a “make it run” demo, but we will add things like:

  • Validating incoming data
  • Logging every request
  • Adding background tasks to avoid slowdowns
  • Gracefully handling errors

So, let me just quickly show you how our project structure is going to look before we move to the code part:

ml-api/
│
├── model/
│   └── train_model.py        # Script to train and save the model
│   └── iris_model.pkl        # Trained model file
│
├── app/
│   └── main.py               # FastAPI app
│   └── schema.py             # Input data schema using Pydantic
│
├── requirements.txt          # All dependencies
└── README.md                 # Optional documentation

 

Step 1: Install What You Need

 
We’ll need a few Python packages for this project: FastAPI for the API, Scikit-learn for the model, and a few helpers like joblib and pydantic. You can install them using pip:

pip install fastapi uvicorn scikit-learn joblib pydantic

 

And save your environment:

pip freeze > requirements.txt

 

Step 2: Train and Save a Simple Model

 
Let’s keep the machine learning part simple so we can focus on serving the model. We’ll use the famous Iris dataset and train a random forest classifier to predict the type of iris flower based on its petal and sepal measurements.

Here’s the training script. Create a file called train_model.py in a model/ directory:

from sklearn.datasets import load_iris
from sklearn.ensemble import RandomForestClassifier
from sklearn.model_selection import train_test_split
import joblib, os

X, y = load_iris(return_X_y=True)
clf = RandomForestClassifier()
clf.fit(*train_test_split(X, y, test_size=0.2, random_state=42)[:2])

os.makedirs("model", exist_ok=True)
joblib.dump(clf, "model/iris_model.pkl")
print("✅ Model saved to model/iris_model.pkl")

 

This script loads the data, splits it, trains the model, and saves it using joblib. Run it once to generate the model file:

python model/train_model.py

 

Step 3: Define What Input Your API Should Expect

 
Now we need to define how users will interact with your API. What should they send, and in what format?

We’ll use Pydantic, a built-in part of FastAPI, to create a schema that describes and validates incoming data. Specifically, we’ll ensure that users provide four positive float values — for sepal length/width and petal length/width.

In a new file app/schema.py, add:

from pydantic import BaseModel, Field

class IrisInput(BaseModel):
    sepal_length: float = Field(..., gt=0, lt=10)
    sepal_width: float = Field(..., gt=0, lt=10)
    petal_length: float = Field(..., gt=0, lt=10)
    petal_width: float = Field(..., gt=0, lt=10)

 

Here, we’ve added value constraints (greater than 0 and less than 10) to keep our inputs clean and realistic.

 

Step 4: Create the API

 
Now it’s time to build the actual API. We’ll use FastAPI to:

  • Load the model
  • Accept JSON input
  • Predict the class and probabilities
  • Log the request in the background
  • Return a clean JSON response

Let’s write the main API code inside app/main.py:

from fastapi import FastAPI, HTTPException, BackgroundTasks
from fastapi.responses import JSONResponse
from app.schema import IrisInput
import numpy as np, joblib, logging

# Load the model
model = joblib.load("model/iris_model.pkl")

# Set up logging
logging.basicConfig(filename="api.log", level=logging.INFO,
                    format="%(asctime)s - %(message)s")

# Create the FastAPI app
app = FastAPI()

@app.post("/predict")
def predict(input_data: IrisInput, background_tasks: BackgroundTasks):
    try:
        # Format the input as a NumPy array
        data = np.array([[input_data.sepal_length,
                          input_data.sepal_width,
                          input_data.petal_length,
                          input_data.petal_width]])
        
        # Run prediction
        pred = model.predict(data)[0]
        proba = model.predict_proba(data)[0]
        species = ["setosa", "versicolor", "virginica"][pred]

        # Log in the background so it doesn’t block response
        background_tasks.add_task(log_request, input_data, species)

        # Return prediction and probabilities
        return {
            "prediction": species,
            "class_index": int(pred),
            "probabilities": {
                "setosa": float(proba[0]),
                "versicolor": float(proba[1]),
                "virginica": float(proba[2])
            }
        }

    except Exception as e:
        logging.exception("Prediction failed")
        raise HTTPException(status_code=500, detail="Internal error")

# Background logging task
def log_request(data: IrisInput, prediction: str):
    logging.info(f"Input: {data.dict()} | Prediction: {prediction}")

 

Let’s pause and understand what’s happening here.

We load the model once when the app starts. When a user hits the /predict endpoint with valid JSON input, we convert that into a NumPy array, pass it through the model, and return the predicted class and probabilities. If something goes wrong, we log it and return a friendly error.

Notice the BackgroundTasks part — this is a neat FastAPI feature that lets us do work after the response is sent (like saving logs). That keeps the API responsive and avoids delays.

 

Step 5: Run Your API

 
To launch the server, use uvicorn like this:

uvicorn app.main:app --reload

 

Visit: http://127.0.0.1:8000/docs
You’ll see an interactive Swagger UI where you can test the API.
Try this sample input:

{
  "sepal_length": 6.1,
  "sepal_width": 2.8,
  "petal_length": 4.7,
  "petal_width": 1.2
}

 

or you can use CURL to make the request like this:

curl -X POST "http://127.0.0.1:8000/predict" -H  "Content-Type: application/json" -d \
'{
  "sepal_length": 6.1,
  "sepal_width": 2.8,
  "petal_length": 4.7,
  "petal_width": 1.2
}'

 

Both of the them generates the same response which is this:

{"prediction":"versicolor",
 "class_index":1,
 "probabilities": {
	 "setosa":0.0,
	 "versicolor":1.0,
	 "virginica":0.0 }
 }

 

Optional Step: Deploy Your API

 
You can deploy the FastAPI app on:

  • Render.com (zero config deployment)
  • Railway.app (for continuous integration)
  • Heroku (via Docker)

You can also extend this into a production-ready service by adding authentication (such as API keys or OAuth) to protect your endpoints, monitoring requests with Prometheus and Grafana, and using Redis or Celery for background job queues. You can also refer to my article : Step-by-Step Guide to Deploying Machine Learning Models with Docker.

 

Wrapping Up

 
That’s it — and it’s already better than most demos. What we’ve built is more than just a toy example. However, it:

  • Validates input data automatically
  • Returns meaningful responses with prediction confidence
  • Logs every request to a file (api.log)
  • Uses background tasks so the API stays fast and responsive
  • Handles failures gracefully

And all of it in under 100 lines of code.
 
 

Kanwal Mehreen Kanwal is a machine learning engineer and a technical writer with a profound passion for data science and the intersection of AI with medicine. She co-authored the ebook “Maximizing Productivity with ChatGPT”. As a Google Generation Scholar 2022 for APAC, she champions diversity and academic excellence. She’s also recognized as a Teradata Diversity in Tech Scholar, Mitacs Globalink Research Scholar, and Harvard WeCode Scholar. Kanwal is an ardent advocate for change, having founded FEMCodes to empower women in STEM fields.



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AI-Powered Face Authentication Hits Record 15.87 Crore in June as Aadhaar Transactions Soar

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The adoption of artificial intelligence in India’s digital identity infrastructure is scaling new highs, with Aadhaar’s AI-driven face authentication technology witnessing an unprecedented 15.87 crore transactions in June 2025. 

This marks a dramatic surge from 4.61 crore transactions recorded in the same month last year, showcasing the growing trust and reliance on facial biometrics for secure and convenient identity verification, according to an official statement from the electronics & IT ministry. 

According to data released by the Unique Identification Authority of India (UIDAI), a total of 229.33 crore Aadhaar authentication transactions were carried out in June 2025, reflecting a 7.8% year-on-year growth. 

The steady rise highlights Aadhaar’s critical role in India’s expanding digital economy and its function as an enabler for accessing welfare schemes and public services. 

Since its inception, Aadhaar has facilitated over 15,452 crore authentication transactions.

The AI/ML-powered face authentication solution, developed in-house by UIDAI, operates seamlessly across Android and iOS platforms, allowing users to verify their identity with a simple face scan, the ministry informed. 

“This not only enhances user convenience but also strengthens the overall security framework,” it said. 

More than 100 government ministries, departments, financial institutions, oil marketing companies, and telecom service providers are actively using face authentication to ensure smoother, faster, and safer delivery of services and entitlements.

The system’s rapid expansion underscores how AI is reshaping the landscape of digital public infrastructure in India, it said. 

UIDAI’s face authentication technology, with nearly 175 crore cumulative transactions so far, is increasingly becoming central to Aadhaar’s verification ecosystem.
In addition to face authentication, Aadhaar’s electronic Know Your Customer (e-KYC) service recorded over 39.47 crore transactions in June 2025 alone. E-KYC continues to streamline onboarding and compliance processes across banking, financial services, and other regulated sectors, reinforcing Aadhaar’s position as a foundation for ease of living and doing business in India, the ministry shared.



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