Chinese AI startup DeepSeek has unveiled a new approach to building larger, more capable AI models without needing the most advanced computer chips that US export controls have restricted. ## Engram: A Solution to Optimize Memory Usage The technique, detailed in a technical paper by DeepSeek founder Liang Wenfeng and researchers from Peking University, tackles a fundamental problem: AI models are getting so large that they’re bumping up against the memory limits of even the best GPUs. DeepSeek’s solution, called "Engram," creates a more efficient filing system that lets the AI store basic facts separately from complex calculations – freeing up precious computing power for the harder thinking tasks. ## Why Chip Memory Matters Modern AI models need to access vast amounts of information quickly during training and when responding to queries. That requires high-bandwidth memory (HBM) – specialized, fast-access memory built into advanced GPUs. China faces a significant disadvantage here, with China’s leading memory chip manufacturer ChangXin Memory Technologies remaining several years behind industry leaders like Samsung, SK Hynix, and Micron. ## How the Breakthrough Works Traditional AI models handle everything through computation – even retrieving simple information. Engram changes this by letting models "look up" foundational facts more efficiently, similar to how humans might consult a reference book. The technique also helps AI handle longer inputs, which remains a major obstacle for deploying AI chatbots as practical assistants. ## Results and Prospects Testing on a 27 billion parameter model showed performance improvements and more computing capacity for complex tasks. Elie Bakouch, a research engineer at Hugging Face, praised the technique for its practical implementation. DeepSeek is expected to release a V4 model with enhanced coding capabilities, coinciding with the first anniversary of its R1 model. The technical paper is expected to receive scrutiny from AI researchers, as DeepSeek has emerged as a prominent example of Chinese AI innovation operating under US export restrictions on advanced semiconductors.