The Information Staff

China's ChangXin Memory Technologies has begun producing HBM3E, an advanced high-bandwidth memory chip used in leading AI processors, in small quantities. The achievement puts CXMT one generation behind global leaders Samsung, SK Hynix, and Micron Technologies. The company plans to expand production in 2027, potentially reducing China's dependence on foreign suppliers for a critical AI infrastructure component.

Beijing-based AI startup Moonshot has trained its Kimi K3 model, the world's largest open-source model with 2.8 trillion parameters, using Nvidia's advanced Blackwell chips despite U.S. export restrictions on such technology to Chinese firms. The company is now seeking additional Blackwell chips to develop Kimi K4, a significantly larger successor model. The situation highlights the tension between U.S. chip export controls and Chinese AI development capabilities.

A Chinese state-backed Shanghai-based company has begun mass production of immersion deep ultraviolet lithography machines, a critical chipmaking tool previously unavailable domestically. The move represents a significant step in China's effort to reduce dependence on foreign semiconductor equipment suppliers. The machines are used by major chipmakers including Taiwan Semiconductor Manufacturing Co. in chip production.

Tencent Holdings said on its earnings call that China's AI chip shortage is beginning to ease, signaling the company will increase spending on AI infrastructure in the second half of 2026. Chief Strategy Officer James Mitchell indicated the spending boost will be enabled by greater availability of China-designed AI chips. The statement suggests that domestic chip supply constraints, which have limited AI deployment across Chinese tech companies, are starting to loosen as local semiconductor efforts mature.

China's national AI fund is in talks to invest in DeepSeek, the AI startup owned by hedge fund High-Flyer, in a funding round that would value the company at over 300 billion yuan, or approximately $44 billion. The investment represents a significant show of state support for a homegrown AI competitor as China seeks to build domestic capabilities in large language models and generative AI. The valuation places DeepSeek among the world's most valuable AI companies, reflecting both the capital intensity of the sector and Beijing's strategic focus on AI development.

DeepSeek, the Chinese AI startup owned by hedge fund High-Flyer Capital Management, is raising outside capital for the first time and has attracted interest from major investors. Tencent and Alibaba are now in talks to invest at a valuation exceeding $20 billion, a significant jump from the company's initial $10 billion+ target announced days earlier. The round appears to have generated substantial investor appetite, pushing the valuation higher as discussions progressed.