China's DeepSeek is working to develop its own artificial-intelligence chips, part of a broader effort to reduce its reliance on outside suppliers.
According to finance.biggo.com, DeepSeek and fellow Chinese AI firm Zhipu AI are both pushing to design in-house AI chips, a move the outlet frames as accelerating a shift away from dependence on Nvidia and Huawei. In other words, two of China's prominent AI developers are trying to secure their own silicon rather than lean on the chips currently powering much of the industry.
The strategy is drawing attention on Wall Street. TradingKey published an Nvidia (NVDA) stock forecast headlined around the news that DeepSeek is building its own chip, posing the question of whether $197 marks the bottom for Nvidia's share price. The framing reflects investor anxiety that large AI customers designing their own processors could eventually chip away at Nvidia's dominant position.
The source items do not detail how far along DeepSeek's chip effort is, when any such chips might reach production, who would manufacture them, or how they would compare in performance to existing hardware. What the reports establish is the direction of travel: DeepSeek, alongside Zhipu AI, wants to build rather than only buy.
Why it matters: if China's leading AI companies succeed in producing their own chips, it could gradually weaken the hold that suppliers like Nvidia have over the AI hardware market and reshape where the industry's computing power comes from.