China’s DeepSeek developing its own AI chip, sources say

Chinese startup DeepSeek is developing its own AI chip, according to three people familiar with the matter, a push that could reduce its reliance on Nvidia and Huawei chips, which it has depended on to train and run its globally popular models. 

Why it matters

If successful, DeepSeek’s expansion into semiconductor development would mark a major strategic shift for a company widely hailed in China as the country’s AI champion, potentially adding to challenges faced by Chinese tech giant Huawei. Shares of U.S.-based Nvidia slipped about 2% in premarket trading.