DeepSeek’s New ’Made in China’ AI Chip Sparks Market Anxiety Amid US-China Tech Tensions

China's DeepSeek has announced a domestically designed and manufactured AI chip, marking a significant step in technological self-sufficiency. This development, fueled by Trump-era trade policies, could disrupt Nvidia's dominance in the Chinese market. While analysts question whether Chinese chipmaking can match Western standards, DeepSeek's previous LLM release demonstrated its capacity to surprise global markets.

The implications for cryptocurrency markets are indirect but tangible. DeepSeek's AI software previously rattled US competitors like OpenAI, creating ripple effects across digital asset prices. Nvidia, a key player in crypto mining hardware, now faces potential exclusion from China's massive market—a scenario that could reshape GPU supply chains and mining economics.