China’s DeepSeek developing its own AI chip, sources say, sending Nvidia shares lower

DeepSeek is reportedly developing its own AI chip, aiming to cut reliance on Nvidia and Huawei for training and running its models. The move could improve supply security and potentially reduce compute costs over time, which is supportive for DeepSeek’s scaling plans. While details are limited, the chip initiative is a notable competitive development for AI infrastructure.

Analysis

DeepSeek is reportedly developing its own AI chip, aiming to cut reliance on Nvidia and Huawei for training and running its models. The move could improve supply security and potentially reduce compute costs over time, which is supportive for DeepSeek’s scaling plans. While details are limited, the chip initiative is a notable competitive development for AI infrastructure.