DeepSeek helps shape Huawei’s future AI chips, report says

DeepSeek is working closely with Huawei Technologies to shape the design of future AI chips, The Information reported on Monday, October 19, citing two people familiar with the matter. The outlet said the collaboration could help China build frontier AI models without technology from Nvidia ↗ 2.54%. It also said the relationship goes further than the usual conversations between a chip supplier and its customers.tradingview.com

The report suggests the Hangzhou-based AI lab has moved beyond writing software for Huawei's processors and is now helping decide what goes into the hardware. The push comes as US export controls limit China's access to advanced chips and chipmaking equipment.

From software partner to chip co-designer

The two companies have been working more closely for months. On September 30, DeepSeek released open-source software for Huawei's Ascend accelerators, including TileLang, a programming language meant as an answer to Nvidia's CUDA platform, The Edge Malaysia reported. DeepSeek said Huawei gave "unreserved and vigorous support" during development and that the two would work together on more projects. The companies also built a "supernode" system using 128 Ascend 950 chips, according to The Daily Star.thedailystar.net+1

In April, DeepSeek previewed its V4 model, adapted to run on Ascend chips. Huawei said its processors were used for part of the model's training, DD News reported. In September, Bloomberg reported that DeepSeek plans to deploy at least 160,000 Ascend 950DT chips at a data center it is building in Inner Mongolia, The Edge Malaysia reported. It would use those chips to run models, not to train them. DeepSeek has so far relied on Nvidia accelerators for training.theedgemalaysia.com+1

Huawei's accelerated roadmap

Huawei has moved its chip schedule forward. At Huawei Connect in September, Huawei said the Ascend 960DT will be available in Q1 2027, three quarters ahead of its original plan, and the 960PR in the third quarter. Rotating chairman David Wang said the company is "evolving our Ascend chip series on a one-generation-a-year cycle," CRN Asia reported, with the Ascend 970 planned for 2028 and the 980 for 2029.huawei.com+1

Supply limits remain

Production capacity is still a bottleneck. According to Bloomberg's sources, shortages of high-end memory will hold Huawei's 950DT output to the low hundreds of thousands this year, and filling DeepSeek's order could take more than a year, The Edge Malaysia reported. Huawei has also said it cannot fully meet domestic demand for AI computing equipment, Sinolytics noted.sinolytics.de+1

The partnership's central test is still unmet. Huawei and DeepSeek have yet to show that Chinese hardware can reliably train advanced models at a speed and cost that compete with Nvidia's.