DeepSeek Plans Huawei Chip Order for Data Centre
Chinese artificial intelligence startup DeepSeek plans to deploy at least 160,000 Huawei AI accelerators at a new data center in Inner Mongolia, according to Bloomberg. The move could create one of the largest known clusters of Huawei AI chips.
The planned facility would use Huawei’s next-generation Ascend 950DT processors to run DeepSeek’s AI models. However, the company does not currently plan to use those chips for model training, according to people familiar with the plans.
The development comes as China pushes to reduce its dependence on Nvidia’s advanced processors. Meanwhile, US export controls have restricted Chinese companies’ access to some of Nvidia’s most capable AI accelerators.
DeepSeek Targets 160,000 Huawei Chips
DeepSeek plans to install at least 160,000 Ascend 950DT chips at its Inner Mongolia data center. If completed, the deployment would significantly exceed the capabilities of many publicly known Huawei AI chip clusters in China.
The company intends to use the processors mainly for inference. In other words, the chips would run AI models after training rather than handle the most demanding model-training workloads.
However, DeepSeek has continued to rely on Nvidia accelerators for training. The startup previously attempted to train models on Huawei hardware, although Nvidia chips have remained important for this stage of development.
The planned order also faces a major supply constraint. Huawei currently lacks enough production capacity to deliver the entire quantity quickly. Moreover, shortages of high-end memory and other components could limit Ascend 950DT output to the low hundreds of thousands this year.
Consequently, delivery of DeepSeek’s order could take more than a year. Huawei must also balance demand from other customers and overseas shipments.
Inner Mongolia Becomes AI Infrastructure Hub
The new data center forms part of DeepSeek’s broader infrastructure expansion in Inner Mongolia. The company is developing computing capacity around Ulanqab, a region that has attracted AI infrastructure because of its relatively low-cost energy and suitable climate.
The planned facility targets a gigawatt scale. At full utilization, that level of power consumption could meet electricity demand comparable to that of roughly 750,000 homes.
DeepSeek has also been hiring data-center personnel in Ulanqab. Earlier reports identified recruitment for server maintenance engineers and delivery managers responsible for data-center launches.
At the same time, other Chinese technology companies are building large domestic-chip facilities. For example, Z.AI completed a 1-gigawatt data center in July, although its installed base of Huawei-class chips remained far smaller.
Therefore, DeepSeek’s proposed deployment would represent a substantial step in China’s domestic AI infrastructure buildout.
Huawei Challenges Nvidia’s Dominance
Huawei has become a central supplier in China’s effort to develop an alternative AI computing ecosystem. Its Ascend processors offer Chinese companies a domestic option as US restrictions limit access to advanced Nvidia hardware.
However, Huawei still faces performance and manufacturing challenges. Nvidia accelerators remain widely regarded as the global standard for both AI training and inference, while Huawei must expand production to meet growing domestic demand.
Meanwhile, DeepSeek’s reported strategy highlights a more selective shift toward domestic chips. The company appears ready to use Huawei processors extensively for inference while continuing to rely on Nvidia hardware for training where possible.
The wider shift also reflects Beijing’s push for greater semiconductor self-reliance. At the same time, some Chinese companies continue to seek Nvidia processors through permitted imports or overseas computing capacity.
DeepSeek has reportedly sought government assistance to secure a larger and faster allocation of Huawei chips. Nevertheless, the final deployment schedule will depend heavily on Huawei’s ability to manufacture and deliver the Ascend 950DT processors.
Bloomberg reported that DeepSeek and Huawei had not provided immediate comment on the plans. The reported 160,000-chip deployment therefore remains a planned project rather than a completed installation.
