Chinese artificial intelligence company DeepSeek is reportedly developing its own AI chip as it seeks to reduce its dependence on hardware supplied by Nvidia and Huawei.
The proposed processor will focus on AI inference, according to three people familiar with the project cited by Reuters . Inference is the process through which a trained AI model generates responses for users.
DeepSeek has reportedly started discussions with external chip designers, semiconductor manufacturers and memory suppliers.
The company has also quietly increased its recruitment of chip-design engineers in recent months. It has reportedly conducted the hiring privately instead of advertising the positions through public recruitment platforms.
The project remains in its early stages, and DeepSeek has not publicly confirmed its chip development plans.
DeepSeek currently relies on Nvidia and Huawei processors to train and operate its AI models.
Developing its own hardware could give the company greater control over the infrastructure behind its models while reducing its exposure to third-party chip suppliers. It would also make DeepSeek another competitor in China’s increasingly crowded AI semiconductor market.
US export restrictions prevent Chinese companies from accessing Nvidia’s most advanced AI chips. These restrictions have encouraged Chinese technology companies to develop domestic alternatives.
DeepSeek is targeting inference rather than the more demanding process of training new AI models.
Demand for inference hardware is growing as more companies and users deploy existing AI models. Specialised inference processors can also consume less power and cost less to operate than general-purpose graphics processors.
DeepSeek previously gained international attention by releasing efficient AI models that delivered competitive performance at substantially lower operating costs.
If the company applies a similar cost-saving approach to chip development, it could increase competitive pressure on Nvidia and other AI hardware suppliers. However, designing and manufacturing a competitive processor will require significant investment and could take several years.
Access to advanced manufacturing technology may also limit DeepSeek’s ability to sell the chips outside China. An analyst cited by Reuters said the company would struggle to reach international markets without access to leading-edge semiconductor production.
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