Chinese Open-Source AI Framework Chitu Challenges NVIDIA's Dominance in AI Chip Market

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On Mon, 17 Mar, 4:00 PM UTC

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A new Chinese open-source AI framework called Chitu aims to reduce dependence on NVIDIA's chips for AI models, potentially disrupting the global AI chip market and advancing China's technological self-sufficiency.

Chinese Startup Unveils Chitu: A Challenger to NVIDIA's AI Chip Dominance

In a significant development for the artificial intelligence (AI) industry, a team associated with China's Tsinghua University has released an open-source AI framework called Chitu. This new framework aims to challenge NVIDIA's dominance in the AI chip market and reduce China's dependence on foreign technology 1.

Key Features and Performance Claims

Chitu is designed as a high-performance inference framework for large language models (LLMs), focusing on efficiency, flexibility, and availability. The framework supports various mainstream LLMs, including DeepSeek, LLama series, and Mixtral 1. According to the developers, Chitu has achieved impressive performance metrics:

  • 315% increase in model inference speed
  • 50% reduction in GPU usage compared to foreign open-source frameworks
  • Compatibility with Chinese-made chips 2

These claims are based on tests conducted with the DeepSeek-R1 model using NVIDIA's A800 GPUs.

The Team Behind Chitu

The framework was developed by Qingcheng.AI, a startup founded in 2023 by Professor Zhai Jidong and his students from Tsinghua University. Professor Zhai serves as the chief scientist for the company, which is backed by Beijing's municipal fund for the AI industry 3.

Broader Context and Implications

  1. U.S. Export Restrictions: The development of Chitu comes in the wake of U.S. hardware restrictions on China, particularly the ban on selling advanced NVIDIA H100 and H800 chips to China-based clients 2.

  2. Chinese Tech Giants' Response: Other Chinese tech companies are also intensifying efforts to achieve technological self-sufficiency. Baidu recently unveiled ERNIE X1, while Alibaba launched R1-Omni, an emotion-reading AI model 2.

  3. Partnerships and Ecosystem Development: Qingcheng.AI has partnered with top Chinese GPU manufacturers, including Moore Threads, Enflame, and Iluvatar CoreX, to build a robust domestic AI ecosystem 3.

  4. Investment Surge: The AI boom has reignited investor interest in Chinese tech, potentially reversing three years of venture capital decline. The Chinese government is preparing a fund expected to mobilize 1 trillion yuan ($137.7 billion) for tech investment 2.

Global Market Impact

The emergence of Chitu and similar Chinese initiatives could significantly impact the global AI chip market. NVIDIA, which currently leads the market, has already experienced market volatility due to these developments. In January, following DeepSeek's breakthrough, NVIDIA lost $593 billion in market value as investors feared increased competition 2.

As China continues to push for technological independence and develop alternatives to Western AI technologies, the global AI landscape may see substantial shifts in market share, innovation patterns, and international collaborations in the coming years.

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