DeepSeek V4 AI model to run on Huawei's chips
What's the story
Chinese AI start-up DeepSeek is gearing up to launch its next-generation model, the DeepSeek V4. It will run on the latest chips designed by Huawei. In preparation for the launch, Alibaba Group, ByteDance, and Tencent Holdings have already placed bulk orders for hundreds of thousands of Huawei AI chips. The move marks a significant shift in the global AI landscape and is seen as a strategic step toward domestic semiconductor independence.
Strategic transition
Breaking industry norms
DeepSeek's decision to use Huawei chips for its V4 model isn't just a technical one, but a highly strategic move. Usually, AI companies work with multiple chipmakers to fine-tune the performance before launching new models. However, DeepSeek has denied early access to NVIDIA and AMD, breaking industry norms. Instead, it has collaborated closely with Huawei and Cambricon Technologies to optimize its model for domestic chips.
Geopolitical response
Shielding from restrictions
DeepSeek's shift comes as US export controls have restricted China's access to advanced chips such as NVIDIA's Blackwell architecture. By developing a model optimized for Huawei chips, DeepSeek is effectively shielding itself from future restrictions. This surge in demand indicates strong industry confidence in Huawei's AI hardware capabilities and a broader trend of aligning infrastructure with domestically produced technology.
Market implications
Implications for US chipmakers
The DeepSeek V4 model's reliance on Huawei chips could challenge NVIDIA and AMD's dominance in China. If Chinese companies successfully optimize their models for local chips, they may not need US hardware at scale. This shift could also prompt other countries to consider localized AI hardware strategies, further intensifying global competition.