Nvidia shares slid in late August after Chinese artificial intelligence start-up DeepSeek unveiled an updated foundational model and announced a pivotal shift towards supporting domestically produced chips. The two-year-old company, which has developed AI models that rival the world’s best, raised concerns among investors as it moves to reduce its reliance on US technology.
DeepSeek is not alone in this push for technological independence. Huawei Technologies, central to China’s self-sufficiency ambitions, recently showcased its latest Ascend series chips and hardware, designed to provide world-class computing power without relying on Nvidia’s processors.
The event marked the first time Huawei had detailed its chip road map since the US blacklisted the company in 2019, citing national security concerns. As confidence in domestic technology grows, Beijing has reportedly urged its tech giants to stop buying even the modified chips Nvidia tailored for China to comply with US export controls.
Together, Huawei and DeepSeek symbolize China’s growing resilience, demonstrating how US trade curbs have sparked significant innovation within the domestic AI industry. This has allowed Beijing to gain ground in its technological rivalry with Washington.
“With US restrictions acting as a push factor and China’s pursuit of self-sufficiency serving as a pull factor, DeepSeek will look for alternatives for chips,” said Gary Ng, director and senior economist for Asia Pacific at Natixis Corporate and Investment Bank. “As the national champion, Huawei will play a major part.”
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