Chinese startup DeepSeek is reportedly developing its own AI inference chips to lessen reliance on Nvidia and Huawei, according to sources cited by Reuters. The project, initiated about a year ago, has seen DeepSeek intensify recruitment of chip design engineers and engage in discussions with various chip design, foundry, and storage firms for collaboration. This strategic move aims to transition DeepSeek from model R&D to semiconductor deployment, addressing the rising demand for computing power. The initiative also seeks to provide alternatives to Nvidia's high-end products amid U.S. export controls, positioning DeepSeek to compete with Chinese tech giants like Huawei, Alibaba, and Baidu, who are also advancing their AI chip capabilities.