Chinese fintech giant Ant Group, backed by Alibaba founder Jack Ma, has used Chinese-made semiconductors to develop artificial intelligence model training methods that could cut costs by 20%, citing people familiar with the matter, Bloomberg reports, writes UNN.
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Earlier this year, DeepSeek briefly crashed Nvidia's stock over speculation that its models require far fewer chips.
Nvidia sharply increased sales in the fourth quarter due to demand for AI chips27.02.25, 08:48
Now Ant Group, backed by Jack Ma, is claiming a major breakthrough in the AI industry. Ant has been able to use Chinese chips made by Alibaba and Huawei to create methods that will reduce AI training costs by 20%, Bloomberg reports.
Moreover, Chinese chips performed about as well as Nvidia chips in Ant Group tests, Bloomberg sources say.
If these Chinese chips catch on, it could hurt Nvidia's current and profitable status as the most popular AI chip maker, TechCrunch notes.
Nvidia chips remain in high demand, particularly in China, where buyers are reportedly getting its latest Blackwell chip despite US export controls.