DeepSeek, Huawei Challenge Nvidia with Open-Source AI Modules

Key Takeaways

• DeepSeek and Huawei released six open-source software modules for the Ascend platform, including a TileLang variant
• A supernode built with 128 Ascend 950 chips aims to rival Nvidia-backed clusters
• Huawei's Eric Xu claimed Ascend chip sales have surpassed Nvidia in China
• TileLang offers a higher-level abstraction than Nvidia's CUDA, lowering the programming barrier
• Huawei says the Ascend software ecosystem is now less of a hurdle than it was two years ago

DeepSeek and Huawei partner on open-source AI chip software

DeepSeek announced a partnership with Huawei to create programming tools for Huawei's Ascend chips. The companies released six open-source software modules for the Ascend platform. One module is a version of TileLang, a chip programming language that DeepSeek says is simpler than Nvidia's CUDA. They also built a supernode solution using 128 Ascend 950 chips. The goal is to reduce China's reliance on Nvidia technology.

Huawei boss says Ascend chip sales beat Nvidia in China

Huawei executive Eric Xu claimed that Huawei's Ascend chips have surpassed Nvidia in sales within China. He said Chinese consumers prefer chips that are reliably available rather than more advanced ones. Xu stated Huawei prioritizes domestic customers and does not plan to expand internationally in a major way. Huawei's HiSilicon chief scientist Liao Heng said the software ecosystem is now less of a barrier for Ascend than it was two years ago.

DeepSeek and Huawei challenge Nvidia's AI dominance

DeepSeek developed software tools for Huawei's chips in a move to reduce China's dependence on American AI technology. The partnership focuses on software that can maximize the performance of Chinese-made semiconductors. Advanced hardware alone is not enough for AI systems since chip-level software must work with the hardware. This collaboration targets one of the biggest obstacles to China's homegrown AI industry ambitions.

DeepSeek brings AI programming tools to Huawei Ascend

DeepSeek is making programming tools for Huawei's Ascend platform available as open source. The collaboration aims to compete with Nvidia's CUDA, which is a major barrier for rival chipmakers. TileLang, DeepSeek's open-source programming language, allows developers to specify computations at a higher level of abstraction. DeepSeek and Huawei also built a supernode with 128 Ascend 950 processors with optimized computation and communication. Huawei says combining hardware and software is essential to competing with Nvidia.

China factory activity grows in September amid AI boom

China's manufacturing PMI rose to 50.1 in September from 49.8 in August, ending two months of contraction. The new orders sub-index was at 50.5 and production was at 51.7. Economists say China's fiscal push is helping the economy recover, but property relief remains important for consumption. The non-manufacturing PMI also rose to 50.2 from 49.0. China's economy grew 4.3% in the second quarter, its slowest pace in over three years, and Beijing targets 4.5% to 5% growth for the year.

China factory activity returns to growth in September

China's factory activity expanded in September as the official manufacturing PMI rose to 50.1 from 49.8 in August, ending two months of contraction. A global AI boom supported the industrial sector while easing weather disruptions allowed factories to resume operations. The non-manufacturing PMI also improved to 50.2 from 49.0. However, recovery remains uneven due to weak consumption, investment and a prolonged property downturn.

OpenAI launches new AI model and tools for ChatGPT

OpenAI launched a less expensive AI model called GPT-6.1 Sol and introduced continuous-running AI agents called dots. The company aims to position ChatGPT as an app store for AI, with other companies like Adobe offering software directly inside it. ChatGPT is now used weekly by 1.2 billion people. Safety incidents forced OpenAI to suspend development of some models recently.

OpenAI targets $1.4 trillion valuation in new funding round

OpenAI reportedly hopes to raise up to $30 billion while targeting a valuation of roughly $1.4 trillion. The company delayed its public listing until next year at the earliest to focus on safety concerns around AI. OpenAI is competing with Anthropic for enterprise customers and revenue growth. The company reached $70 billion in annual recurring revenue in July.

McDonald's invests $8.5 billion in AI drive-thru ordering

McDonald's is spending $8.5 billion through 2036 to modernize restaurants with an AI system called Archy for drive-thru ordering. Archy takes orders in English and Spanish with over 90% accuracy. The system is part of a larger platform called ArchIQ that helps track inventory and manage operations. McDonald's previously ended an earlier AI ordering experiment with IBM in 2024.

AI safety concerns spotlight Q2 Holdings stock

AI safety scrutiny is affecting investment decisions for companies in enterprise AI. Q2 Holdings provides cloud-based digital banking platforms and real-time processing tools for U.S. financial institutions and fintechs. The company generated about $846 million in revenue and has a market cap of $3.50 billion. Secure and auditable AI tools are becoming essential for banking workflows.

Timeline of AI safety developments after Hugging Face attack

After an attack on Hugging Face's open-source AI model, the AI industry focused more on safety. Key events from 2023 include Google creating a safety framework and the AI Safety Foundation being set up. The foundation released new safety standards and certification programs. Companies also began building tools to stop AI systems from acting against human values.

Most rural broadband operators lack an AI strategy

A survey found that 82% of rural broadband operators have no defined AI strategy. Only 18% have a plan, and just 5% have a clear implementation roadmap. Without AI strategies, these operators may struggle to meet customer demands. The survey calls for better AI planning to stay competitive.

Investors back AI startup Flow Engineering at $750M valuation

Valor, Atreides, and Sequoia invested in Flow Engineering, a three-year-old San Francisco startup. Flow uses AI agents to align CAD drawings with product requirements and test results. Its customers include Anduril, Rivian, Joby Aviation, and General Motors PPU. The company is tackling challenges in hardware design.

Rothschildavenir advances AI trading technology after six years

Rothschildavenir in Singapore has spent over six years developing AI trading technology. The company focused on continuous improvement rather than treating AI as a quick fix. Its technology processes large amounts of market data and identifies patterns. The company continues to refine its platform to meet the changing needs of digital traders.

Perplexity launches Photon retrieval engine with faster speed

Perplexity released Photon, a retrieval engine written in Rust. It cuts p99 latency from 800 ms to 65 ms and runs on 20% fewer machines. Photon powers a new Fast Search mode in the Perplexity Search API, costing $1 per 1,000 requests. The engine is not open source and cannot be self-hosted.

Sources

• DeepSeek and Huawei are partnering to build open-source AI chip software to cut Nvidia reliance
• Huawei boss claims homegrown AI chip sales top Nvidia in China
• DeepSeek and Huawei Target a Key Source of Nvidia’s A.I. Dominance
• DeepSeek brings AI software to Huawei’s Ascend chips
• Chinese factory activity returns to growth in September amid AI boom
• China's factory activity returns to growth in September amid AI boom
• ChatGPT maker wants to be the App Store for AI as safety concerns grow
• OpenAI Aims for $1.4 Trillion Valuation With New Funding
• McDonald's is spending $8.5 billion to put an AI called Archy in drive-thrus — even after its first attempt failed
• AI Safety Questions Put Q2 Holdings Stock In Focus
• A timeline of developments in AI safety since the attack on Hugging Face
• 82% of rural broadband operators are stuck without an AI strategy
• Valor, Atreides, and Sequoia back AI startup Flow Engineering at $750M valuation
• Rothschildavenir Advances AI Trading Technology After More Than Six Years of Development
• Perplexity Introduces Photon: A Rust-Based Retrieval Engine That Cuts p99 Latency From 800 ms to 65 ms