Chinese tech heavyweights Alibaba and Baidu have started using their own chips to train their AI models, shifting their reliance away from Western companies like Nvidia, The Information reported. US export restrictions on powerful semiconconductors forced Chinese companies to innovate their own alternatives. While there is still a performance gap from the US’ most powerful chips, the People’s Republic industry has made strides in developing competitive domestic options.
The two giants are still relying in part on Nvidia to develop their most advanced models, but the move points to a larger national trend. Breakout AI star DeepSeek has also shifted its chip supply in part away from Nvidia, opting to employ some of Huawei’s chips in its training, The Information reported last month. “The competition has undeniably arrived,” an Nvidia spokesperson told the publication. “To win the AI race, U.S. industry must earn the support of developers everywhere, including China.”