DeepSeek unveils new AI model tailored for Huawei chips as China pushes for tech autonomy

DeepSeek is a Chinese startup. Last year it surprised everyone with a low-cost AI model. Now, it has launched a preview of a new model that works with Huawei chips. This shows that China is becoming more independent in this technology area. DeepSeek Said, "the Pro version of the new model outperforms other open-source models in world-knowledge benchmarks, only trailing Google's Gemini Pro 3.1"

The close collaboration with Huawei on the new model, the V4, contrasts with DeepSeek's past reliance on Nvidia's, opens new tab AI chips. Huawei said, its chips were used in some of the V4's training process. He Hui, director of semiconductor research at consultancy Omdia said, "This is a big deal for China's AI industry. He also added, "Huawei's Ascend chips are the country's best homegrown alternative to Nvidia, and supporting DeepSeek V4 shows that top Chinese AI models can now run on Chinese hardware”.

Most top AI models use chips made by Nvidia. But now DeepSeek is starting to use Huawei chips instead. This shows what Nvidia’s CEO Jensen Huang is worried about, because of U.S. export rules and China trying to depend on its own technology, Nvidia might lose developers in China. Huang said, "The day that DeepSeek comes out on Huawei first, that is a horrible outcome for out nation".

V4 quickly became the top trending model on Hugging Face, which is a popular place where developers share and use machine learning models. This was pointed out by Lewis Tunstall. Tunstall said, It is good at handling extremely long and complex text tasks, and it does so much more cheaply than competing top models, but has some limitations. For instance, it doesn't support multiple modalities like images and video.

HUAWEI AND DEEPSEEK'S CLOSE COLLABORATION : DeepSeek has drawn criticism from Washington and U.S. rivals that its success owes much to the improper use of American know-how. DeepSeek said it uses Nvidia chips, but didn’t say if those chips were restricted to export bans. It also said it hasn’t purposely used any AI-made data from OpenAI.

The launch happened just one day after the White House accused China of stealing ideas from U.S. AI labs on a large scale. It also comes before Donald Trump travels to Beijing next month to meet China’s leader, Xi Jinping.

In January, the Trump administration allowed Nvidia to sell its H200 chips to China. But according to sources, the shipments haven’t happened yet because both the U.S. and China can’t agree on the sales terms. Chinese chip companies went up because people expect more use of local chips. Huahong Semiconductor rose about 15%, and SMIC went up around 10%. Nvidia shares also increased after Intel said it expects strong revenue and profit, which made people feel the AI boom is still going strong.

DEEPSEEK NOW FACES MANY RIVALS : Many Western goverment and some Asian Goverments have banned their institutions and officials from using DeepSeek, because they are concern about data privacy. However, DeepSeek's models have consistently been among the most used on international platforms. In China regardless of securing a national champion status a year ago, it has disappeared during a slew of competitive offering from domestic rivals.

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