At the beginning of this year, DeepSeek’s emergence caused a temporary decline in Nvidia’s stock price due to rumors that its models could operate with significantly fewer chips.

Recently, Ant Group, a prominent Chinese fintech company backed by Alibaba’s founder, Jack Ma, has announced a substantial breakthrough in the field of artificial intelligence. According to Bloomberg, which cited sources familiar with the matter, Ant Group successfully utilized Chinese-made chips from Alibaba and Huawei to develop methods that reduce AI training costs by 20%.

Furthermore, sources cited by Bloomberg claim that the Chinese-made chips performed comparably to Nvidia chips in Ant Group’s tests.

If these Chinese chips gain widespread adoption, it could potentially threaten Nvidia’s dominant position as the leading producer of AI chips, which is currently highly profitable.

Nvidia’s chips remain in high demand, including in China, where buyers are reportedly obtaining its latest Blackwell chip despite export restrictions imposed by the U.S.

Ant Group and Nvidia have not immediately responded to requests for comment on this matter.