The AI boom is here, with DeepSeek planning to use Huawei AI chips, and it’s fueling the establishment of more data centers around the world. One AI firm looking to set up its new AI data center is DeepSeek, and this center is expected to be located in Inner Mongolia.
To power this AI data center, DeepSeek is reportedly turning to Huawei, the Chinese technology giant. Huawei’s next-generation Ascend 950DT chip is set to be the power source running this coming data center, according to available sources.
According to the sources, DeepSeek plans to deploy over 160,000 Huawei top accelerators in its data center. While these plans are reportedly in motion, there are a few factors that might slow down the adoption of this chip in the coming data center.
DeepSeek Huawei AI Chip Partnership: Roadblocks That Might Surface
Regardless of DeepSeek’s plan to make use of Huawei’s chip in its coming data center, there are roadblocks that the AI firm will face. Sources point out that the set figure of Huawei’s top accelerators that will be used in the data center, 160,000, might not be attainable.
At this time, Huawei’s production capacity for its 950DT chip isn’t able to meet DeepSeek’s needs. This is as a result of the current shortage of materials that is plaguing the technology industry.
Currently, the production capacity of the Huawei 950DT chip for this year is expected to be in the low hundred-thousand range. The Chinese firm also has other clients in demand for this chip, meaning that it won’t be able to meet the needs of DeepSeek this year.
For it to meet the needs of DeepSeek, Huawei will need some more time to scale up production. At this time, there is no information on the timeline for the development of DeepSeek’s AI data center.
The use of Huawei’s Ascend processor will help boost the development of DeepSeek’s AI system at its Mongolia data center. DeepSeek is currently trying to raise funds for the development of its AI data center.
How China Will Benefit Through This Deal
China’s technology industry is seeking independence from foreign component suppliers. This is as a result of standing sanctions preventing China’s use of US or US-backed technology in the development of its technology.
For years, Huawei has been working to develop its own chips for mobile and enterprise use, and the Ascend 950DT chip is one of the products of this work. Just like Huawei, DeepSeek is a Chinese firm, but it currently relies on the use of Nvidia chips in the training of its AI system.
A switch to Huawei’s Ascend 950DT Chip will be a big win for the Chinese technology industry, as it aims to show it can rely solely on self-developed technology in place of foreign technology. DeepSeek’s need for over 160,000 chips will also become the largest cluster of the Ascend chip, beating any other cluster currently in use. At this time, the details on DeepSeek’s need for the Huawei Ascend 950DT chip are sparse, but more details might be revealed over the course of the coming months. The Huawei Ascend 950DT chip was officially debuted in August 2026; however, the new line of Ascend chips was announced last year during the Huawei Connect 2025 event.