Three sources familiar with the matter told foreign media that Chinese startup DeepSeek recently launched its new AI model, DeepSeek-V4, which runs on Huawei chips. Following this, major Chinese internet companies have scrambled to place orders for Huawei's Ascend 950 series AI chips.
According to foreign media reports, informed sources revealed that Chinese tech giants such as ByteDance, Tencent, and Alibaba are contacting Huawei to negotiate new chip procurement deals.
Two of the sources added that companies specializing in cloud computing and GPU rental services are also actively buying Huawei chips, though they did not disclose specific company names.
Foreign media pointed out that although the performance of Huawei's 950PR chips clearly surpasses the H20 chips from American AI giant Nvidia, it still falls short of Nvidia's more advanced H200 chips, which are restricted due to regulatory uncertainties. The H20 was previously the most powerful chip that Nvidia was allowed to sell to China, but Beijing imposed restrictions on H20 imports last year.
Although both China and the US have approved the export of the H200, disagreements between Beijing and Washington over sales conditions mean that the chip has not yet been sold to Chinese companies. This has given Huawei's semiconductor products new sales opportunities.
With US export controls continuing to limit Chinese companies' access to Nvidia's most advanced chips, the rush to buy Huawei chips highlights how DeepSeek-V4’s launch last week has driven demand for domestic Chinese AI hardware. It also shows recognition of the performance of Huawei’s chips in the market.
DeepSeek has decided to specifically optimize its V4 model for Huawei chips, marking a strategic shift from relying on American semiconductors to domestic Chinese AI hardware, echoing Beijing’s primary goal of pursuing technological dominance.
DeepSeek stated that once the Huawei Ascend 950 chip-powered super nodes achieve “mass shipment,” its V4-Pro model is expected to see significant price reductions in the second half of this year.
However, DeepSeek also acknowledged that certain restrictions will remain before production capacity improves, reflecting the current tight supply of high-end Chinese AI chips.