DeepSeek (164news.com's guide to deepseek) (164news.com on deepseek) Plans Large Huawei Chip Order for New Inner Mongolia Data Center
DeepSeek is preparing a significant order of Huawei AI chips for a new data center, according to Bloomberg. The reported one-gigawatt facility in Ulanqab, Inner Mongolia, is expected to begin partial operations in late 2027 or early 2028.
While the specific order size and chip model remain undisclosed, this move marks a shift away from Nvidia’s dominance in Chinese AI labs. Nvidia’s most advanced AI accelerators are legally restricted from sale in China, leaving Huawei’s Ascend family as a primary domestic option.
Jensen Huang of Nvidia has expressed concern, describing the shift as a "horrible outcome" for America, as it could weaken the U.S.’s AI software ecosystem.
This trend is not new. DeepSeek’s V4 model launched in April was designed to run on Huawei’s Ascend 950, and Chinese cloud providers have since placed substantial orders for these chips.
Additionally, DeepSeek has been reported to be developing its own inference chip with SMIC, potentially reducing its reliance on Huawei chips in the future.
The reported order highlights Huawei’s expanding production capabilities and DeepSeek’s ambitions to build powerful AI systems. With substantial funding and a focus on Artificial General Intelligence, DeepSeek is poised to compete on a global scale.