A year after DeepSeek disrupted the U.S. market, investors are bracing for a possible exit from China at the next moment. It is a rapid and concerted push to scale up domestic production. Nvidia Rivals of artificial intelligence chips.
In the past two months, four Chinese startups known as the “Four Dragons” (Moore Threads, MetaX, Biren, and Enflame) have already gone public or filed for listing.
All four help advance Beijing’s broader strategy to strengthen its domestic hardware stack and reduce dependence on the United States.
Meanwhile, established semiconductor companies such as Huawei and Cambricon are rapidly expanding their scale.
At its annual Connect conference in September, Huawei outlined a three-year plan to overtake Nvidia.
The tech giant has the experience of building a global telecoms business, taking over the world’s smartphone share, and making it happen. apple We expanded into China and rose to the top of the Chinese cloud market in just a few years.
But advanced chips are one of the most difficult parts of the AI stack to crack.
Naveen Rao, CEO of AI computing startup Unconventional AI, said Chinese chips still lag behind U.S. companies, but the performance gap is closing.
“Performance has improved with each generation. I think we’ve increased our chip production capacity to the point where the performance of each chip is almost on par with Nvidia chips,” Rao said.
According to Bloomberg, this pressure is being driven by the Chinese government itself, which is funding the chip industry with hundreds of billions of dollars and creating demand by directing its tech giants to use domestically produced chips.
Another big advantage for China is energy generation, which is one of the biggest bottlenecks in the AI race. Electricity generation in this country has expanded rapidly in recent years, while in the United States it has remained flat.
“It’s clear that very soon, probably even later this year, we’re going to be producing more chips than we can run, except for China. China’s power growth is phenomenal.” tesla xAI CEO Elon Musk said this at the Davos World Economic Forum last week.
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