DeepSeek Bets on Huawei Chips for AI Training Amid US Export Controls
SingTao · 3 SOURCESabout 2 hours ago3 MIN
Summary
DeepSeek founder and CEO Liang Wenfeng has disclosed ambitious plans to shift toward domestic semiconductor technology for AI model training, positioning Huawei chips as central to the company's future strategy amid escalating US export controls. During a closed-door investor meeting reported by The Information, Liang described the adoption of Huawei or other domestic processors as "one of our biggest bets," emphasizing that this effort "must succeed." DeepSeek expects Huawei to deliver a new batch of AI training chips by the fourth quarter of this year or the first quarter of next year at the earliest. The company is simultaneously finalizing a second financing round targeting 500 billion yuan, which would value the startup at 5 trillion yuan, with plans to invest approximately 300 billion yuan in expanding computing infrastructure.
Key Points
- DeepSeek founder Liang Wenfeng described using Huawei or other domestic processors as DeepSeek's "biggest bet" and emphasized the work "must succeed"
- Huawei is expected to deliver new AI training chips to DeepSeek by Q4 2026 or Q1 2027, according to Liang
- DeepSeek is currently training a 2-trillion-parameter model surpassing its V4 flagship's 1.4 trillion parameters, with an 8-trillion-parameter model also planned
- The 2-trillion-parameter model, expected to be DeepSeek V4.1 Pro releasing mid-to-late October, requires 50-60 trillion tokens for training
- Hardware requirements vary significantly: 30,000 Nvidia H100/H200, 15,000 B200, 60,000 Huawei Ascend 910C, or 30,000 Ascend 950 chips
- DeepSeek is finalizing a second funding round targeting 500 billion yuan with a 5-trillion-yuan valuation, planning to invest 300 billion yuan in computing power
- Liang expressed confidence that Huawei chips could catch up to Nvidia's capabilities within a few years
- DeepSeek continues using Nvidia chips while Huawei's supply remains constrained by advanced memory and component shortages
Why It Matters
The partnership between DeepSeek and Huawei represents a significant push by Chinese companies to build independent AI infrastructure outside the Nvidia-dominated ecosystem, directly responding to US technology restrictions. For Hong Kong investors and tech professionals, this development signals that China's AI industry is accelerating its self-sufficiency drive, potentially reshaping global semiconductor and AI competition. The substantial funding DeepSeek is seeking underscores the massive capital requirements of AI development and the strategic importance both companies attach to breaking through export control barriers.
The partnership between DeepSeek and Huawei represents a significant push by Chinese companies to build independent AI infrastructure outside the Nvidia-dominated ecosystem, directly responding to US technology restrictions. For Hong Kong investors and tech professionals, this development signals that China's AI industry is accelerating its self-sufficiency drive, potentially reshaping global semiconductor and AI competition. The substantial funding DeepSeek is seeking underscores the massive capital requirements of AI development and the strategic importance both companies attach to breaking through export control barriers.