Exclusive-China's DeepSeek Developing Its Own AI Chip, Sources Say
Source: US News & World Report/Reuters
July 7, 2026, at 6:33 a.m.
July 7 (Reuters) - Chinese startup DeepSeek is developing its own AI 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. Shares of U.S.-based Nvidia slipped about 1.6% in premarket trading.
"Nvidia is at zero in China and staying there. DeepSeek has almost no chance of selling silicon outside of China unless it gets access to leading edge manufacturing," said Analyst Richard Windsor of Radio Free Mobile, adding that the development does not affect the chipmaker.
DeepSeek rose to global fame more than a year ago after releasing two highly efficient AI models that went viral worldwide, surprising many in Silicon Valley and Washington. The company has long been known for emphasizing AI model breakthroughs rather than commercializing its technology.
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