Archive · 5 Sep 2026
DeepSeek’s Huawei Chip Order Signals Uneven AI Decoupling
DeepSeek wants to buy a very large number of computer chips from Huawei.
The chips would be used in a new data center in Inner Mongolia.
DeepSeek plans to use them to run AI models, rather than build or train new ones.
Training AI usually requires especially powerful computing equipment.
DeepSeek has continued using Nvidia chips for that training work.
Huawei may not be able to make all the ordered chips quickly because of shortages.
The data center may not be partly ready until late 2027 or early 2028.
The order still matters because it shows Chinese companies are planning around Chinese-made chips.
It could also give Huawei an important large-scale demonstration of its AI hardware.
DeepSeek is reportedly preparing to order at least 160,000 Huawei Ascend 950DT accelerators.
The chips would support a gigawatt-scale data center near Ulanqab in Inner Mongolia.
DeepSeek currently plans to use the Huawei chips for inference, not model training.
The lab has relied on Nvidia accelerators for training, including after testing earlier Huawei hardware.
Huawei’s memory and component shortages could limit production and delay fulfillment beyond 12 months.
- Who
- DeepSeek and Huawei are involved, with Nvidia relevant to DeepSeek’s current training operations.
- What
- DeepSeek is reportedly preparing to order at least 160,000 Huawei Ascend 950DT AI accelerators for a new data center.
- When
- The data center is scheduled to come online partially by late 2027 or early 2028; fulfillment could take more than 12 months.
- Where
- The planned facility is at Ulanqab in Inner Mongolia, China.
- Why
- DeepSeek is planning domestic-silicon capacity for AI inference as access to Western chips remains constrained.
- Reported order
- At least 160,000 Huawei Ascend 950DT accelerators
- Estimated value
- Approximately $2.56 billion
- Planned use
- Running AI models, or inference, rather than training them
- Facility scale
- A gigawatt-scale data center
- Location
- Ulanqab, Inner Mongolia
- Supply constraint
- High-end memory and other component shortages could cap Huawei’s annual 950DT output at the low hundreds of thousands
- Expected timeline
- Partial data-center operations are scheduled for late 2027 or early 2028