Nvidia Faces New AI Challenge As Chinese Start-Up Unveils Framework To Cut Reliance On Its GPUs

A new artificial intelligence framework developed by a Chinese start-up could reduce reliance on Nvidia Corp.‘s NVDA chips for AI model inference, marking the latest effort by Chinese tech companies to achieve technological self-sufficiency amid U.S. export restrictions.

What Happened: Qingcheng.AI, founded by Tsinghua University professor Zhai Jidong, unveiled “Chitu” – a high-performance inference framework for large language models that can operate on Chinese-made chips, reported South China Morning Post.

The open-source framework directly challenges Nvidia’s dominance in supporting advanced AI models like DeepSeek-R1, according to a joint statement released Friday.

When tested with DeepSeek-R1 using Nvidia’s A800 GPUs, Chitu achieved a 315% increase in model inference speed while reducing GPU usage by 50% compared to foreign frameworks, the company claimed.

The development comes amid heightened AI competition in China following DeepSeek’s breakthrough in January, which demonstrated high-performance models at significantly lower costs than U.S. competitors. DeepSeek’s success triggered a selloff in U.S. tech stocks, with Nvidia losing $593 billion in market value as investors feared increased competition.

Why It Matters: Chinese tech giants are rapidly entering the race. Baidu Inc. BIDU on Sunday unveiled ERNIE X1, claiming performance comparable to DeepSeek-R1 at half the price. Alibaba Group Holding Ltd. BABA recently launched R1-Omni, an emotion-reading AI model available for free.

These initiatives reflect China’s broader push for technological independence after Washington banned sales of Nvidia’s advanced H100 and H800 chips to China-based clients. Backed by Beijing’s municipal AI fund, Qingcheng.AI has partnered with top Chinese GPU manufacturers including Moore Threads, Enflame and Iluvatar CoreX.

The AI surge has reignited investor interest in Chinese tech, potentially reversing three years of venture capital decline. “People are rushing just to find the next DeepSeek,” said Annabelle Yu Long, founding partner of BAI Capital, as the Chinese government prepares a fund expected to mobilize 1 trillion yuan ($137.7 billion) for tech investment.

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