DeepSeek V4 to run on Huawei chips as China accelerates domestic AI independence strategy

DeepSeek V4 model to use Huawei chips? But, can Huawei truly match Nvidia in power and scale

DeepSeek is moving V4 AI model to Huawei chips, reducing reliance on Nvidia hardware. This shift reflects China's AI independence strategy and export restriction pressures. Huawei's Ascend chips promise lower costs and scalable inference performance. However, Nvidia still leads in high-end AI training power globally. Early reports suggest hybrid usage may continue for stability. Big tech firms are already stockpiling Huawei chips rapidly. The real question now, can Huawei close the performance gap faster than expected? The DeepSeek V4 model to use Huawei chips is emerging as one of the most significant shifts in the global AI race, with reports suggesting that hundreds of thousands of Huawei AI chips have already been ordered ahead of launch. According to multiple sources, the Hangzhou-based AI startup DeepSeek is preparing to roll out its next-generation model within weeks, marking a decisive move toward domestic semiconductor independence. The decision answers a key question dominating search trends: why is DeepSeek moving away from US chipmakers? The answer lies in geopolitics, supply constraints, and strategic control over AI infrastructure. This development places Huawei Technologies at the center of China's AI ambitions, while sidelining US giants like Nvidia and AMD. With AI models becoming increasingly dependent on hardware optimization, this move could reshape the competitive balance between the US and China in artificial intelligence. The decision behind the DeepSeek V4 model to use Huawei chips is not just technical -- it's deeply strategic. Traditionally, AI companies collaborate with multiple chipmakers to optimize performance before launching new models. However, DeepSeek has reportedly denied early access to Nvidia and AMD, breaking industry norms. Instead, it has worked closely with Huawei and Cambricon Technologies to rewrite core parts of its model. This ensures that V4 runs efficiently on domestically produced chips, reducing reliance on foreign hardware. This shift comes at a time when US export controls -- strongly backed by Donald Trump -- have restricted China's access to cutting-edge chips like Nvidia's Blackwell architecture. By building a model optimized for Huawei chips, DeepSeek is effectively future-proofing itself against further restrictions. Reports indicate that Chinese tech giants, including Alibaba Group, ByteDance, and Tencent Holdings, have placed bulk orders totaling hundreds of thousands of Huawei chips. This surge in demand signals strong industry confidence in Huawei's AI hardware capabilities. It also reflects a broader shift where Chinese firms are aligning their infrastructure with domestically produced technology. The DeepSeek V4 model to use Huawei chips is expected to benefit directly from this scale. Larger chip availability means faster deployment, improved training cycles, and reduced dependency on global supply chains that are increasingly volatile due to geopolitical tensions. The implications of the DeepSeek V4 model to use Huawei chips extend far beyond China. Nvidia, long considered the dominant force in AI hardware, could face a gradual erosion of its market share in China. Despite claims by Nvidia CEO Jensen Huang that China remains only "nanoseconds behind" the US in AI development, this move suggests that the gap may close faster than expected. If Chinese firms successfully optimize their models for local chips, they may no longer need US hardware at scale. Meanwhile, AMD also faces a similar challenge, as both companies lose early access opportunities that are critical for fine-tuning chip performance with next-gen AI models. The situation is further complicated by reports that DeepSeek may have previously trained models using advanced Nvidia chips despite export restrictions. This adds another layer of tension to an already complex US-China tech rivalry. The DeepSeek V4 model to use Huawei chips could mark the beginning of a new phase in China's AI ecosystem -- one that is more self-reliant and less vulnerable to external pressure. DeepSeek is not stopping at a single model. Reports suggest that it is developing two additional V4 variants, each optimized for different capabilities and designed specifically for Chinese hardware. This multi-model strategy could give China a diversified AI portfolio capable of competing globally. Moreover, the success of earlier models like V3 and R1 -- known for their lower cost and competitive performance -- has already shaken investor confidence in high-spending US AI firms. V4 is expected to build on that momentum. 1. What is the DeepSeek V4 model to use Huawei chips and why is it important? The DeepSeek V4 model to use Huawei chips represents a major shift toward China's self-reliant AI ecosystem, reducing dependence on US chipmakers like Nvidia and AMD. This move is driven by export restrictions and the need for stable, domestic hardware supply. It is important because it could reshape the global AI competition and accelerate China's semiconductor innovation. 2. How will the DeepSeek V4 model to use Huawei chips impact the global AI chip market? The DeepSeek V4 model to use Huawei chips could significantly impact the global AI chip market by weakening Nvidia and AMD's dominance in China. As Chinese firms adopt Huawei-based infrastructure, demand for US chips may decline in the region. This shift may also push other countries to explore localized AI hardware strategies, intensifying global competition. (You can now subscribe to our Economic Times WhatsApp channel)

DeepSeek's V4 model will run on Huawei chips, The Information reports

April 3 (Reuters) - China's DeepSeek's new model called V4 will run on the latest chips designed by Huawei Technologies, U.S. digital news outlet The Information reported on Friday. In preparation for V4's launch, Chinese tech giants, including Alibaba Group, ByteDance and Tencent Holdings, have placed bulk orders for Huawei's upcoming chip totaling hundreds of thousands of units, the report said, citing five people with direct knowledge of the purchase. The next-generation model will likely be launched in the next few weeks, the report said. Huawei Technologies and DeepSeek did not immediately respond to Reuters requests for comment sent outside normal office hours. DeepSeek has spent the past few months working directly with Huawei and another Chinese chip designer, Cambricon Technologies, to help rewrite pieces of the model's underlying code, and in testing, the report said, citing two people close to the company. DeepSeek is also working on two additional V4 variants, each optimized for different capabilities and built to run on Chinese chips, the report said. Reuters had earlier this year reported that DeepSeek has not shown U.S. chipmakers its upcoming flagship model for performance optimization, breaking from standard industry practice ahead of a major model update. The lab instead granted early access to domestic suppliers, including Huawei Technologies. The release of DeepSeek's low-cost models V3 and R1 triggered a global tech stock selloff last year, causing investors to question whether U.S. AI firms needed to spend billions of dollars on AI computing power. Since then, there has been a great deal of interest in DeepSeek-V4, a next-generation model that has yet to be released. (Reporting by Sneha S K in Bengaluru; editing by Barbara Lewis and Arun Koyyur)