The Chinese AI startup is reportedly designing its first inference chip, marking a strategic push into semiconductor development as demand for AI computing continues to rise.
Chinese artificial intelligence startup DeepSeek is developing its first in-house AI chip, a step that could reduce its dependence on Nvidia and Huawei for AI hardware, according to a Reuters report citing three people familiar with the matter.
The chip is being designed for inference, the stage where trained AI models create responses for users rather than for training new models. If successful, the project would mark a significant strategic shift for DeepSeek, which has so far been known primarily for its AI model development.
According to Reuters, the Hangzhou-based company has increased hiring of chip design engineers in recent months while quietly working with external partners, including chip design, foundry and memory companies. The effort began about a year ago and remains at an early stage.
The report said DeepSeek‘s move reflects a broader industry trend, with AI developers seeking greater control over the hardware powering their models. Companies such as OpenAI and Anthropic have also introduced or are developing custom AI chips for inference workloads.
DeepSeek has increasingly depended on Huawei’s Ascend processors after U.S. export restrictions limited Chinese firms’ access to Nvidia’s most advanced AI chips. Huawei currently supplies around half of China’s estimated US$50 billion domestic AI chip market, Reuters reported.
Reuters also reported that DeepSeek is seeking fresh external funding at a valuation of US$52-59 billion, its first major fundraising effort after previously avoiding outside investment.
