Earlier this year, DeepSeek caused a sudden drop in Nvidia's stock due to rumors that its AI models required fewer chips. Now, a Chinese fintech company, Ant Group, supported by Alibaba founder Jack Ma, claims to have made a major breakthrough in the field of artificial intelligence.
According to Bloomberg, Ant Group has managed to reduce AI training costs by 20% using only Chinese-made chips produced by Alibaba and Huawei. These Chinese chips performed almost as well as Nvidia’s chips during Ant Group’s tests.
If these Chinese chips become widely adopted, they could threaten Nvidia’s current position as the leading and most profitable player in the AI market.
Despite this, Nvidia chips remain highly sought after worldwide, including in China. Despite U.S. export restrictions, Chinese buyers continue to acquire Nvidia’s latest Blackwell chip.
Ant Group and Nvidia have not commented on the news.
