Chinese AI startup DeepSeek previewed its V4 AI model specifically optimized for Huawei’s Ascend series chips. This integration allows top-tier Chinese AI models to run on domestic hardware, reducing the nation's dependence on NVIDIA platforms.
US export controls have accelerated China's development of these domestic alternatives. DeepSeek claims the V4 model's performance trails only Google’s most advanced closed-source models in specific benchmarks.
The announcement triggered a rally in Chinese chipmakers, including SMIC and Huahong Semiconductor. This shift poses a long-term strategic challenge to NVIDIA and global semiconductor ETFs as China strengthens its domestic supply chain.