A new China-buys-China narrative is taking shape as Beijing steps up its tech rivalry with the US. The world’s second-largest economy not only wants to build generative artificial intelligence models, but also power them with its own hardware, redrawing a supply chain dominated by Nvidia. 

There certainly is an opening after Nvidia reportedly halted production related to its H20 AI chip tailor-made for the Chinese market. Beijing had told tech companies to stop buying them due to national security concerns. Last week, DeepSeek released an upgrade to its flagship V3 model to accommodate the next generation of home-grown chips.