# China's DeepSeek Develops Own AI Chip to Reduce US Dependencies

> Fresh off its model releases, DeepSeek is reportedly designing its own AI chip, according to Bloomberg. The silicon is aimed at inference, the job of actually generating responses from a trained model, rather than the far more demanding work of training new models from scratch. That is a pragmatic place to start, since inference chips are easier to build and account for the bulk of day-to-day compute once a model is deployed. The move fits a broader pattern. Chinese labs are increasingly pursuing custom silicon to blunt the impact of US export controls that limit their access to the best Nvidia hardware, and DeepSeek joins others reportedly working on homegrown chips. Whether the part is competitive is an open question, and designing a chip is a long, expensive road with plenty of room to stumble. But the direction of travel is clear. If a scrappy lab known for efficient models can also lower its dependence on foreign hardware, it chips away at one of the main levers the US has been using to slow China's AI progress.

_Section: [Daily AI Updates](https://www.wortins.com/daily-ai) · Source: Bloomberg · Published Friday, July 10, 2026_

## Wortins' read

Fresh off its model releases, DeepSeek is reportedly designing its own AI chip, according to Bloomberg. The silicon is aimed at inference, the job of actually generating responses from a trained model, rather than the far more demanding work of training new models from scratch. That is a pragmatic place to start, since inference chips are easier to build and account for the bulk of day-to-day compute once a model is deployed. The move fits a broader pattern. Chinese labs are increasingly pursuing custom silicon to blunt the impact of US export controls that limit their access to the best Nvidia hardware, and DeepSeek joins others reportedly working on homegrown chips. Whether the part is competitive is an open question, and designing a chip is a long, expensive road with plenty of room to stumble. But the direction of travel is clear. If a scrappy lab known for efficient models can also lower its dependence on foreign hardware, it chips away at one of the main levers the US has been using to slow China's AI progress.

## Source

[Read the full story at Bloomberg](https://www.bloomberg.com/news/articles/2026-07-07/chinese-ai-startup-deepseek-developing-its-own-ai-chip-reuters-says)

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