Core Viewpoint - The release of DeepSeek-V3.1 model by AI startup DeepSeek, which utilizes the new UE8M0 FP8 data format, has sparked widespread speculation about breakthroughs in Chinese AI chips, especially in the context of restrictions on NVIDIA H20 exports [1]. Group 1: UE8M0 FP8 Data Format - UE8M0 FP8 is a special 8-bit floating-point format that uses only exponent bits without mantissa, designed to store scale information, significantly reducing memory and bandwidth usage by up to 75% while ensuring numerical stability [3]. - The format is compatible with the MXFP8 hardware specification, allowing DeepSeek's training and inference numerical system to align with future hardware, thus avoiding complex numerical conversions [3]. Group 2: Domestic AI Chip Market Focus - Following the announcement, domestic chip stocks surged, with Cambrian's stock price reaching approximately 1170-1188 RMB, pushing its market value close to 500 billion RMB, reflecting strong market expectations for domestic alternatives [5]. - Kunlun Chip recently secured a significant contract worth over 1 billion RMB in the telecommunications sector, marking a key breakthrough in market expansion [5]. - The Chinese regulatory body has reportedly discouraged domestic companies from purchasing NVIDIA H20, emphasizing the existence of alternatives, which further catalyzes the development of the domestic chip ecosystem [5]. - The adaptation of DeepSeek's model is seen as a catalyst for the demand for domestic chips, enhancing the willingness of domestic companies to utilize foundational platforms based on local chips [5].