China’s AI developer DeepSeek is preparing to launch its next-generation V4 model powered by chips from Huawei Technologies, signaling a deeper shift toward domestic semiconductor ecosystems.
The upcoming model, expected within weeks, is being optimized specifically for Chinese hardware. Major technology firms including Alibaba Group, ByteDance and Tencent Holdings have reportedly placed large-scale orders for Huawei’s latest chips, amounting to hundreds of thousands of units.
DeepSeek has been collaborating closely with Huawei and Cambricon Technologies to adapt its model architecture and codebase for these processors. The company is also developing multiple V4 variants tailored for different performance needs, all designed to run on locally produced chips.
The move reflects a broader decoupling trend in the AI sector, where Chinese firms increasingly rely on domestic semiconductor solutions rather than U.S. suppliers. Earlier reports indicated that DeepSeek did not provide U.S. chipmakers early access to its new model for optimization, diverging from typical industry practices.
DeepSeek previously disrupted global markets with its lower-cost V3 and R1 models, which raised questions about the necessity of massive AI infrastructure spending by Western companies. The anticipated V4 release is expected to further intensify competition in the global AI race.
