Ant Group Co., backed by Jack Ma and affiliated with Alibaba, has successfully reduced AI model training costs by 20% through the use of Chinese-made chips from Alibaba and Huawei, alongside U.S. chips from AMD.

This strategic shift towards local alternatives underscores the efforts of Chinese companies to lessen their dependence on advanced Nvidia semiconductors, which are currently restricted from export to China.

Ant Group has announced significant upgrades to its AI healthcare solutions, which are now being implemented in seven major hospitals across Chinese cities such as Beijing and Shanghai.

The new healthcare AI model integrates technology from DeepSeek's R1 and V3, Alibaba's Qwen, and Ant's BaiLing, enhancing medical inquiries and patient services.

Employing a Mixture of Experts (MoE) approach, Ant Group has achieved performance levels that rival Nvidia's H800 chips, marking a significant milestone in AI development.

These developments illustrate the growing competition between Chinese and U.S. companies in the AI technology space, especially following DeepSeek's demonstration of cost-effective model training methods.

DeepSeek, an AI startup under Fantasia Quantitative Hedge Fund, has also made headlines by launching its new model, DeepSeek-R1, which was developed at a significantly lower cost to compete with established models like those from OpenAI.

Industry leaders, including Baidu's CEO Robin Li, stress the necessity for increased investments in AI to develop competitive models, highlighting that substantial funding is still required despite recent successes.

The advancements made by Ant Group have sparked a nationwide movement in China to implement large language models across various sectors, including healthcare.

Entrepreneur Arnaud Bertrand remarked that Ant Group's achievements could signify a victory for China over U.S. semiconductor sanctions, suggesting a shift in the technological landscape.

While the long-term competitiveness of Chinese chips against Nvidia's performance remains uncertain, this progress signals a push for technological independence within China.

If Chinese chips gain widespread adoption, it could threaten Nvidia's dominance in the lucrative AI chip market, potentially altering the balance of power in the global semiconductor industry.