Chinese voice-recognition leader iFlytek announced Monday that its upgraded Xinghuo X1 reasoning model—trained entirely on Huawei’s AI chips—now rivals the performance of top-tier global models such as OpenAI’s o1 and DeepSeek’s R1.
The milestone, revealed in a WeChat blog post and expanded upon in an earnings call Tuesday, positions iFlytek and Huawei at the forefront of China’s efforts to decouple its AI development from U.S. semiconductor dependence.
It comes amid tightening restrictions by Washington, including a recent requirement that U.S. chipmaker Nvidia obtain licenses to export its H20 chips—products specifically designed for the Chinese market—to Chinese companies.
Self-sufficiency in AI is no longer a strategic goal—it’s a necessity, says Liu Qingfeng, iFlytek’s founder and chairman.
The reasoning model, which iFlytek first co-developed with Huawei in mid-2024, represents a leap forward in what the company calls “controllable” and “safe” AI. Huawei’s Ascend 910B chip, once only 20% as efficient as Nvidia’s GPUs in training similar models, now operates at nearly 80% efficiency after a year of joint optimization efforts.
The advancement carries significant geopolitical weight. As the U.S.-China tech rivalry escalates, the ability to train advanced language models without relying on American hardware is becoming a central priority for Chinese firms and state-backed initiatives.
Liu stressed that state-owned enterprises and critical sectors would increasingly favor homegrown AI solutions that mitigate reliance on politically vulnerable supply chains.
Beyond China’s borders, iFlytek also sees opportunity. With global concerns about AI security and growing interest in diversifying computing infrastructure, the company plans to promote its LLMs internationally.
Its Hong Kong-based international headquarters, established last year, will serve as a launchpad for expanding into foreign markets—particularly in education and voice recognition services.
Despite its technological progress, the company’s financial results were mixed.
iFlytek reported 2024 revenues of 23.34 billion yuan (US$3.1 billion), an 18.79% year-on-year increase. However, net profit dipped nearly 15%, with shares edging down 0.44% on Tuesday.
