Nvidia Corporation (NASDAQ:NVDA) shares are trading lower following reports suggesting China’s DeepSeek is developing AI chips for inference, which reduces its reliance on the company.
DeepSeek’s Quiet Push Into Semiconductors
If successful, the move would mark a major strategic shift for DeepSeek — widely regarded as China’s AI champion — and could reduce its reliance on both Nvidia and Huawei chips, which it has historically depended on to train and run its globally popular models.
The Broader Context
DeepSeek would be joining a growing list of AI companies seeking to reduce dependence on Nvidia by developing custom silicon. OpenAI last month unveiled Jalapeño, its first custom inference chip developed with Broadcom, while Anthropic has been weighing building its own chips, Reuters reported in April.
