China is rapidly challenging Nvidia's dominance in AI chips, with major tech firms and government backing pushing for self-reliance and advanced domestic chip production.

• Nvidia CEO Jensen Huang warned that China is "nanoseconds behind" the US in chip development.
• DeepSeek's 2024 launch of an AI model rivaling OpenAI's ChatGPT "stunned the tech world" by its low training cost and fewer high-end chip requirements.
• Alibaba's new chip reportedly matches Nvidia's H20s in performance while using less energy, and Huawei unveiled its "most powerful chips ever" with a three-year plan to challenge Nvidia.
• Chinese companies like MetaX and Cambricon Technologies are securing major contracts and seeing significant investment, with Tencent also committing to domestic chips.
• While experts highlight a shrinking gap, China still lags in complex analytics and highly developed supply chains, but is projected to achieve independence from US chips in about five years.