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Originally published by Capital Business
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business
October 6, 2025
2mo ago

How China is challenging Nvidia’s AI chip dominance

How China is challenging Nvidia’s AI chip dominance

OCT 16 - The US has dominated the global technology market for decades. But China wants to change that. The world's second largest economy is pouring huge Kenya breaking news | Kenya news today |..

✨ Key Highlights

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.

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Part of the Day's Coverage

Qualcomm Faces £480m Lawsuit as China and India Advance in Chip Market - October 2025

A consumer group's case against chip giant Qualcomm could lead to a share of a £480 million payout for nearly 30 million UK consumers who bought Apple or Samsung smartphones between 2015 and 2024. Meanwhile, China is rapidly challenging Nvidia's dominance in AI chips, with major tech firms and government backing pushing for self-reliance. As India also pushes its semiconductor industry, ASML executive Frank Heemskerk praised Prime Minister Narendra Modi's business-friendly approach. Heemskerk stated it's easier to meet with senior officials in the White House than with EU commissioners.

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