Nvidia stock China AI chips news is in the spotlight after Chinese AI startup DeepSeek hit a big problem. The company is trying to train its new R2 AI model using Huawei’s Ascend chips, but it’s not going well. Because of this, DeepSeek is now turning back to Nvidia’s GPUs a move that could make Nvidia even stronger in the AI market.
Earlier this year, DeepSeek became famous for its low cost R1 AI model. It looked like a serious challenger to big tech companies. Now, with its R2 model, the company wanted to prove that Chinese hardware could replace U.S chips. But training the model on Huawei’s Ascend AI chips has been a nightmare.
So far, DeepSeek has not completed even one full training run using Ascend chips. Running the model after it’s trained (inference) might work, but training it from scratch is failing again and again. To fix this, Huawei has sent its top engineers to DeepSeek’s office to help solve the problem.
Why This Is Good for Nvidia
This is where Nvidia stock China AI chips investors start paying attention. Even with U.S. restrictions on selling high end GPUs to China, Nvidia is still the most trusted choice for training large AI models. Their chips, like the A100, H100, and new B100, are proven to work reliably.
When training huge AI models, stability is more important than cost, says Dr. Alex Tan, an AI engineer. One crash can waste weeks of work. Nvidia’s hardware and software are still years ahead of competitors. Because of these advantages, many AI labs even in China prefer Nvidia, and that’s good news for Nvidia’s stock.
An AI lab in Asia tried to move from Nvidia to a cheaper local chip maker. On paper, it looked fine. In practice, it was a disaster. Training failed multiple times, and the engineers spent weeks fixing bugs instead of improving the AI. In the end, they switched back to Nvidia GPUs and got stable results immediately.
DeepSeek’s current situation looks very similar.
The Nvidia stock China AI chips situation shows three important things for investors. Nvidia’s track record makes it the safest choice for big AI projects. Even with export rules, Chinese companies find ways to use Nvidia GPUs. Every time a competitor fails, Nvidia looks even stronger.
Why Competitors Struggle
Former AI chip engineer Mei Lin explains, It’s not just about making fast chips. You need strong software, tools, and developer support. Nvidia has been building this for over 15 years. You can’t catch up quickly. This is why Huawei’s Ascend might take years before it can match Nvidia in both hardware and software.
I’ve worked with AI teams trying to train models without Nvidia. In one case, we used a different chip to avoid delays. Within two weeks, we faced driver problems, missing tools, and crashes. We switched to Nvidia cloud GPUs and met our deadlines. The lesson? In AI, reliability saves time and time is money.
Huawei will keep improving the Ascend chip. If they can help DeepSeek finish training R2 quickly, it will be a big win for China’s AI industry. But for now, Nvidia stock China AI chips news shows that Nvidia’s position is still strong.
DeepSeek’s problem with Huawei chips is turning into a win for Nvidia. Until rivals can match both the speed and stability of Nvidia’s GPUs, companies around the world including in China will keep relying on them. And that’s why Nvidia’s stock continues to rise.