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DeepSeek aims to make its own AI chip

DeepSeek makes pivot that should put Silicon Valley on high alert

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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