Zhi Tong Cai Jing·2025-10-15 13:33Core Viewpoint - China is accelerating its investment in the artificial intelligence (AI) sector, supported by national policies and R&D investments from major tech companies and local suppliers, which is expected to drive the development of domestic computing power and AI models [1][2]. Group 1: Investment and Development - UBS highlights that despite uncertainties in imported AI chips, domestic computing power is continuously developing due to government support and investments from major tech firms [1]. - Alibaba and Baidu are favored by UBS for their ongoing progress in self-developed chips, which will strengthen their positions in the AI value chain [1]. Group 2: Technological Advancements - Recent technological advantages include improvements in domestic GPU performance through internal R&D and local suppliers, as well as system-level enhancements via supernode scaling [2]. - The design of supernodes, such as Alibaba's Panjiu 128 and Huawei's Ascend 384, significantly increases GPU quantities per cabinet, compensating for performance gaps in individual domestic GPUs [2]. Group 3: AI Model Development - AI model developers are optimizing algorithms for domestic GPUs, with DeepSeek's latest v3.2 model utilizing the TileLang programming language to better fit the local algorithm ecosystem [2]. - Most internet companies are accelerating the development of ASICs to optimize workloads and improve cost-effectiveness [2]. Group 4: Hardware and Software Ecosystem - A recent survey of AI chip experts revealed that domestic GPUs are now comparable to NVIDIA's Ampere in performance, although they still lag behind the Blackwell series [3]. - Some domestic chip manufacturers have established their own software stacks or added CUDA compatibility, enhancing engineer migration efficiency, though fragmentation limits scalability [3]. Group 5: Supply Chain and Market Position - China's capabilities in advanced process technology and high-bandwidth memory production are still in early stages, impacting supply chain strength [3]. - Besides Alibaba and Baidu, UBS also sees potential in iFlytek for its advancements in integrating domestic hardware with large model development, and prefers Horizon Robotics, Northern Huachuang, and Zhongwei Company [3].