China aims to rival Nvidia by building a full AI ecosystem with domestic chips and state backing.

China is developing an AI ecosystem that integrates domestic AI labs, hardware, and state-backed funding to reduce reliance on Nvidia and American technology. The state-backed "Big Fund" is considering a $45 billion investment in DeepSeek, a Chinese AI lab optimized for Huawei's Ascend chips. This move signals China's strategy to create a vertically integrated AI stack, potentially making the country itself Nvidia's biggest competitor rather than any single company. Nvidia's CEO has expressed concern over AI models running best on non-American hardware, highlighting the strategic risk for Nvidia.