Chinese AI models adapt without Nvidia

Watch on YouTube ↗  |  January 14, 2026 at 19:57  |  2:52  |  CNBC
Speakers
Deirdre Bosa — Anchor/Reporter, CNBC Tech Check
Kelly — Host

Summary

CNBC's Deirdre Bosa reports that a Chinese AI company released an advanced model trained entirely on Huawei Ascend chips, challenging the narrative that frontier AI requires American silicon. She argues this makes Nvidia's China comeback look more temporary and positions Huawei and other domestic chip makers as a good-enough utility provider. The segment also compares Chinese open-source models with Gemini and ChatGPT, noting Gemini's advantage from Google's TPU vertical stack.

  • Chinese AI company claims model trained entirely on Huawei chips.
  • Nvidia received approval for China-bound sales on same day.
  • Deirdre Bosa says Nvidia's China comeback looks more temporary.
  • Huawei and peers could become utility provider for good-enough AI.
  • Chinese model is seen as good for open source but below top Gemini/ChatGPT.
  • Gemini's performance is tied to Google's TPU vertical integration.
  • Chinese AI company is backed by Alibaba and Tencent and surged 85% after Hong Kong IPO.
Ideas
Deirdre Bosa Anchor/Reporter, CNBC Tech Check 0:22
China demand shift makes Nvidia less must-have.
China's ability to train an advanced AI model entirely on Huawei Ascend chips and its strategy of using cheap, older, bulk domestic hardware for 'good enough' AI undermines the narrative that frontier AI needs American silicon. This makes Nvidia's China comeback look more temporary, and Nvidia plus other American advanced chips are becoming nice-to-have rather than need-to-have in China. Nvidia remains a luxury brand for the West and private markets that can afford its chips, but Huawei and peers are becoming the utility provider for countries and companies that just need adequate compute.
NVDA SMH HIGH
Deirdre Bosa Anchor/Reporter, CNBC Tech Check 0:38
Huawei ecosystem gains as China avoids Nvidia.
Chinese AI companies are publicly crediting Huawei's Ascend chips for training advanced models, signaling that domestic hardware can finally do the heavy lifting. The Chinese strategy of using cheap, older, bulk chips in a 'Costco' or brute-force approach can make Huawei and its domestic peers the utility provider for countries and companies that only need good-enough AI, especially as they try to catch up to Nvidia's speed and efficiency.
Chinese domestic chip makers HIGH
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This CNBC video, published January 14, 2026, features Deirdre Bosa discussing NVDA, SMH, Chinese domestic chip makers. 2 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Deirdre Bosa  · Tickers: NVDA, SMH, Chinese domestic chip makers