DeepSeek's New AI Model Sparks Rally In Chinese Tech And EV Stocks As Nvidia Retreats

Chinese tech and EV stocks climbed on Friday after AI startup DeepSeek launched its upgraded model optimized for domestic chips, according to Benzinga. The move bolstered Beijing’s AI independence drive as Nvidia halted production of its China-only H20 chip. The upgrade delivers faster processing, a new FP8 precision format, and a hybrid inference structure, along with a “deep thinking” button and updated API pricing starting Sept. 6. By optimizing for next-generation domestic chips, DeepSeek is positioning itself at the forefront of China’s AI self-sufficiency push. DeepSeek’s shift comes after struggles with Huawei’s Ascend processors forced training on Nvidia chips, a dependency China is now pushing to reduce. Regulators have summoned Tencent and ByteDance to curb reliance on U.S. hardware, encouraging adoption of Huawei and Cambricon chips.