China’s Ant Group Claims Major AI Breakthrough Using Local Chips
3 min read Ant Group claims it has cut AI training costs by 20% using only Chinese-made chips from Alibaba and Huawei, with no major performance loss. This challenges Nvidia’s dominance, especially amid U.S. export bans on high-end AI chips. If Chinese chips prove effective, demand for Nvidia’s hardware in China could drop, boosting China’s AI self-sufficiency. Neither Ant Group nor Nvidia have commented, but the AI chip race is heating up. March 25, 2025 12:52
Chinese fintech giant Ant Group, backed by Alibaba founder Jack Ma, has reportedly cut AI training costs by 20% using only Chinese-made chips, according to Bloomberg sources.
A Challenge to Nvidia’s AI Dominance?
Ant Group used Alibaba and Huawei chips instead of Nvidia’s dominant AI hardware—and saw no major drop in performance. If true, this could mark a huge shift in China’s AI landscape, especially amid U.S. export controls on high-end Nvidia chips like Blackwell.
Earlier this year, Chinese AI firm DeepSeek shook markets after speculation that its models required far fewer Nvidia chips than expected, briefly causing Nvidia’s stock to drop.
What This Means for the AI Chip Race
🔹 If Chinese chips prove viable, demand for Nvidia’s AI hardware in China could decline, threatening its dominance.
🔹 China’s AI industry may become more self-sufficient, reducing reliance on U.S. technology.
🔹 Despite U.S. export bans, reports suggest some Chinese firms are still acquiring Nvidia’s latest chips.
Neither Ant Group nor Nvidia have officially commented on the report yet, but this development signals growing competition in the AI hardware space.
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