DeepSeek said last month that its latest artificial intelligence model is compatible with domestic AI chips that would be released soon, unleashing a surge of interest in a handful of Chinese chipmakers.
Startup chip designer Cambricon became China’s most expensive stock by price-earnings ratio as investors bet that U.S. export controls would force China to fast-track development of its own chip ecosystem to reduce dependence on Nvidia. A group of Chinese chip and AI model companies recently announced a “chip-model” alliance to push for greater self-sufficiency, and several AI chip designers are preparing initial public offerings to tap investor interest.
DeepSeek’s announcement confirmed that Chinese AI developers are able to engineer models in a way that may not require Nvidia’s most advanced graphics processing units (GPUs). Nvidia’s latest earnings forecast assumed no H20 chip sales to China. For small chip designers in China, the uncertainty over access to Nvidia chip supplies creates a major opportunity.
But which Chinese company, or companies, will fill the Nvidia void is still unclear. HuaweiiHuaweiHuawei is a Chinese technology company focused on mobile phones and telecommunications, and is seen as a poster child for China’s global tech ambitions.READ MORE is the current market leader. Many other chip designers are struggling with high research and development costs, a small customer base of mostly state-owned enterprises, U.S. blacklisting, and limited chip fabrication capacities.
