Earlier this year, Nvidia experienced a temporary decline in its stock value due to speculation surrounding DeepSeek’s models, which reportedly require a significantly lower number of chips.
In recent developments, Ant Group, a major Chinese fintech company supported by Alibaba founder Jack Ma, has claimed a significant advancement in AI technology. Ant Group has reportedly utilized Chinese-manufactured chips from Alibaba and Huawei to develop methods that reduce AI training costs by 20%, according to sources cited by Bloomberg.
Furthermore, the Chinese chips demonstrated performance on par with Nvidia chips during tests conducted by Ant Group, as per Bloomberg’s sources.
Should these Chinese chips gain widespread adoption, it may pose a threat to Nvidia’s prevailing and highly profitable position as a leading AI chip manufacturer.
Despite these potential challenges, Nvidia chips remain in high demand, including in China, where buyers are reportedly acquiring its newest Blackwell chip despite existing U.S. export controls.
At the time of reporting, neither Ant Group nor Nvidia provided immediate comments on the matter.
