DeepSeek’s AI chip plans

DeepSeek is developing its own AI chip, Reuters reported, in a move that could reshape China’s domestic semiconductor race while also ramping up pressure on US chip giant Nvidia.

The Chinese AI startup is seeking to reduce reliance on Nvidia and Huawei chips to train and run its breakthrough models. The self-sufficiency push comes as Nvidia’s market share in China has eroded owing to US export controls, with Huawei set to capture roughly 50% this year.

But Huawei’s domestic dominance is being challenged by rival tech companies like Alibaba, Baidu, and now DeepSeek, which are designing in-house AI chips, while the Chinese firms collectively heed Beijing’s call to reduce dependence on US technology.