The Deepseek logo and words reading "Artificial Intelligence AI" are seen in this illustration taken on Jan. 29, 2025. Reuters-Yonhap
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.
The chip is designed for inference — the stage of AI computing in which a trained model generates responses for users — rather than for training new models, the sources said.
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 percent in premarket trading.
