China ADRs rallied in overnight trading. Fangdd up 7%; YINN up 4%; KE Holdings, Li Auto up 2%; Baidu, JD.com, Alibaba up more than 1%.

Jack Ma-backed Ant Group Co. used Chinese-made semiconductors to develop techniques for training AI models that would cut costs by 20%, according to people familiar with the matter.

Ant used domestic chips, including from affiliate Alibaba Group Holding Ltd. and Huawei Technologies Co., to train models using the so-called Mixture of Experts machine learning approach, the people said. It got results similar to those from Nvidia Corp. chips like the H800, they said, asking not to be named as the information isn’t public. Ant is still using Nvidia for AI development but is now relying mostly on alternatives including from Advanced Micro Devices Inc. and Chinese chips for its latest models, one of the people said.

The models mark Ant’s entry into a race between Chinese and US companies that’s accelerated since DeepSeek demonstrated how capable models can be trained for far less than the billions invested by OpenAI and Alphabet Inc.’s Google. It underscores how Chinese companies are trying to use local alternatives to the most advanced Nvidia semiconductors. While not the most advanced, the H800 is a relatively powerful processor and currently barred by the US from China.