DeepSeek aims to make its own AI chip
proactiveinvestors.com
July 9, 2026
3 min read
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Summary
DeepSeek, a Hangzhou-based AI startup, is developing its own chip to reduce reliance on Nvidia and Huawei's Ascend processors. This strategic pivot signals significant changes in China's AI landscape.
Key Takeaways
- DeepSeek is developing its own inference chip to reduce reliance on Nvidia and Huawei, adapting to export restrictions on advanced hardware.
- The company aims to lower operational costs by designing a chip specifically for inference, which is less demanding than training and can be produced using older manufacturing methods.
- Chinese firms are expected to shift 46% of their AI-accelerator budgets to domestic suppliers within a year, creating a significant market opportunity for DeepSeek.
- DeepSeek's recent price cut of 75% for its V4-Pro model indicates a strategy to enhance competitiveness and demand for its AI services.
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