Chinese Chip

• Nvidia has launched a major crackdown on its supply chain, cutting off more than half of its approved customers across Asia to prevent AI chips from being smuggled into China. • The company is implementing a strict new “white list” system to close legal loopholes that previously allowed its powerful hardware to reach restricted Chinese firms. • This move follows reports of Nvidia's market share falling in China and is intended to ensure compliance with strict export controls.

• Chinese AI startup DeepSeek is developing its own proprietary AI chips to power its artificial intelligence systems, according to a report by Reuters. • The move comes as the company seeks to reduce reliance on external hardware providers to sustain its computational needs. • This development is significant as China faces ongoing U.S. export restrictions on high-end semiconductors, such as those from Nvidia.

• Meituan released LongCat-2.0, a massive 1.6-trillion-parameter AI model, for free commercial use on Monday. • The model was developed using a computing cluster of 50,000 Chinese-made processors, with software optimizations designed to bypass hardware limitations. • This achievement is significant as it demonstrates China's ability to advance its AI ambitions despite ongoing U.S. export curbs on high-end chips.

• Chinese food delivery giant Meituan has unveiled LongCat-2.0, a new open-source large language model featuring 1.6 trillion parameters. • The company claims this is the first model of its scale to complete both full training and inference using exclusively domestic Chinese chip clusters. • This development is significant as it demonstrates China's ability to build massive AI models despite international restrictions on high-end semiconductors.

• Chinese AI and semiconductor firms are driving a projected rebound in onshore IPOs for 2026 as Beijing prioritizes technological self-reliance. • Baidu’s chip unit, Kunlunxin, is reportedly seeking approval for a $2 billion Hong Kong listing alongside plans for a smaller domestic float. • This shift allows the Chinese government to maintain tighter regulatory influence and align corporate funding with national strategic priorities.

• Chinese artificial intelligence and semiconductor companies are leading a resurgence in onshore initial public offerings (IPOs). • This trend marks a significant reversal of a listing hiatus that had persisted since the beginning of 2024. • The shift toward domestic listings is driven by the ongoing tech war between China and the United States, which has complicated overseas financing.

• Chinese artificial intelligence and semiconductor companies are spearheading a rebound in onshore initial public offerings (IPOs). • Ho-Yin Lee, Citigroup's Asia-Pacific co-head of technology and communications, notes that mainland listings allow companies to access a deeper pool of domestic capital. • This shift is significant as it enables firms previously traded in Hong Kong to reach a broader investor base and enhance their domestic branding.