Beijing: Major Chinese technology companies are moving quickly to secure artificial intelligence chips from Huawei after the release of the new DeepSeek V4 model, as demand for computing power rises sharply across the industry.
Companies including Tencent, Alibaba and ByteDance are placing urgent orders for Huawei’s Ascend chips, according to industry sources. The rush comes as DeepSeek V4 has been designed to run efficiently on these chips, making them a preferred choice for firms looking to expand their AI services.
The new model from DeepSeek offers improved performance and can handle much longer and more complex tasks than earlier versions. Its open availability and lower operating cost have encouraged fast adoption among developers and businesses, leading to a surge in demand for computing infrastructure.
Cloud service providers have also moved quickly. Platforms operated by Alibaba and Tencent began offering DeepSeek V4 soon after its release, allowing users to access the system at scale. This rapid rollout has further increased the need for AI chips.
The growing demand is putting pressure on supply. Huawei is expected to ship hundreds of thousands of AI chips this year, but production remains limited due to restrictions on advanced chipmaking equipment. This has created a tight market, with companies competing to secure early access.
The shift also reflects a broader change in China’s technology sector. Due to export restrictions from the United States, access to advanced chips from companies like Nvidia has become more difficult. As a result, Chinese firms are increasingly turning to domestic alternatives such as Huawei’s Ascend processors.
Analysts say this marks a significant step toward building a more self reliant AI ecosystem in China. By combining locally developed software like DeepSeek V4 with domestic hardware, the country is reducing its dependence on foreign technology while strengthening its position in the global AI race.
Even so, industry experts note that while Chinese systems are improving quickly, they still face competition from leading global AI developers. The current surge in demand for Huawei chips highlights both the progress made and the challenges ahead as companies race to scale up their capabilities.