Nano Labs Ltd (NASDAQ:NA) disclosed a strategic investment in Hangzhou Weiheng Technology Co., Ltd., acquiring a 5% stake.

Weiheng Technology develops AI-focused ASIC compute-storage chips for edge computing and large AI models, with products compatible with DeepSeek’s latest models.

Jianping Kong, Chairman and CEO of Nano Labs, said, “The evolution toward cost-performance optimization and practical deployment is expected to accelerate the adoption of AI models across industries such as consumer electronics, embodied intelligence, and intelligent vehicles, propelling the sector toward smarter and more efficient solutions.”

”Looking ahead to 2025, AI technology is poised to spark a new wave of applications in endpoint computing, unlocking vast market potential. With its innovative technologies, our invested startup is well-positioned to thrive in this wave, seize greater opportunities, and continue driving global technological progress.”

Notably, yesterday, China's DeepSeek startup unveiled an open-source large language model platform that outperforms OpenAI's ChatGPT at a fraction of the cost.

The shockwave hit U.S. markets hard, raising fears over intensifying AI competition just as companies pour heavy investments into the new technology.

Last week, Nano Labs unveiled FPU3.0, its latest ASIC architecture aimed at enhancing AI inference and blockchain performance.

The FPU series is Nano Labs' proprietary ASIC chip architecture tailored for high-bandwidth High Throughput Computing applications.

Price Action: NA shares are up 4.59% at $7.27 premarket at the last check Tuesday.

Photo via Shutterstock.

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