China’s DeepSeek developing its own AI chip, sources say

Chinese startup DeepSeek is developing its own artificial intelligence 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.