Nvidia and Palantir Stocks Climb on Ant Group’s AI Cost-Cutting Innovation
Nvidia (NVDA) and Palantir (PLTR) shares saw gains of 2% and 5.4%, respectively, following news that Jack Ma’s Ant Group (BABA) is leveraging China-made semiconductors to reduce AI model training costs by 20%, according to a Bloomberg News report.
Ant Group’s Shift to Domestic AI Chips
The Chinese fintech giant has reportedly developed new techniques using locally produced chips to train its artificial intelligence (AI) models. The move is part of a broader effort to reduce reliance on US-made chips and lower operational expenses.
By adopting China-based semiconductor technology, Ant Group aims to enhance efficiency and strengthen its AI capabilities while achieving significant cost reductions.
Market Reaction
Investors responded positively to the report, driving Nvidia’s stock up by 2% and Palantir’s by 5.4%, reflecting optimism over the growing demand for AI technology and semiconductor innovation.
The development also underscores China’s rising influence in the AI hardware market, potentially posing a competitive challenge to US chipmakers.
