Earlier this year, DeepSeek briefly crashed Nvidia’s stock over speculation that its models require far fewer chips.
Now, the Chinese fintech giant Ant Group, backed by Alibaba founder Jack Ma, is claiming a major breakthrough in AI. Ant was able to use Chinese chips from Alibaba and Huawei to create methods that reduced AI training costs by 20%, Bloomberg reports, citing sources familiar with the matter.
Moreover, Chinese chips have shown the same results as Nvidia chips in Ant Group tests, Bloomberg’s sources say.
If these Chinese chips become popular, it could hurt Nvidia’s current and very profitable status as the most popular AI chip maker.
Nvidia chips remain highly sought after, including in China, where buyers are reportedly getting the latest Blackwell chips despite US export controls.
