DeepSeek Launches V4 AI Model Optimized for Huawei Ascend Chips, Strengthening China’s Tech Self-Sufficiency
Beijing: DeepSeek, a Chinese startup known for its cost-effective AI models, has unveiled a preview of its highly anticipated V4 model, specifically designed for Huawei chip technology. This launch highlights China’s increasing self-reliance in the technology sector. The Pro version of the V4 model has reportedly surpassed other open-source models in global knowledge benchmarks, second only to Google’s proprietary Gemini-Pro-3.1.
The collaboration with Huawei for the V4 model marks a significant shift from DeepSeek’s previous dependence on Nvidia chips. He Hui, director of semiconductor research at consultancy Omdia, emphasized the importance of this development for China’s AI industry, stating that Huawei’s Ascend chips represent the country’s best domestic alternative to Nvidia. He noted that the support for DeepSeek’s V4 demonstrates that leading Chinese AI models can now operate on homegrown hardware.
Most prominent AI models currently rely on Nvidia chips for training and operation. Huawei confirmed that its chips were utilized in the training process of the V4 model.
DeepSeek’s transition away from Nvidia underscores concerns voiced by Nvidia CEO Jensen Huang and others regarding the potential loss of the developer ecosystem in China, driven by U.S. export controls and Beijing’s push for technological self-sufficiency. Huang remarked that the emergence of DeepSeek on Huawei’s platform would be detrimental for the U.S.
Huawei and DeepSeek’s Close Collaboration
DeepSeek has faced allegations from Washington and U.S. competitors, claiming that its achievements are largely due to the unauthorized use of American technology. This latest launch coincides with a White House statement accusing China of large-scale intellectual property theft from U.S. AI labs.
It remains uncertain whether these tensions will affect diplomatic relations ahead of an upcoming visit by U.S. President Donald Trump to Beijing for discussions with Chinese leader Xi Jinping. DeepSeek has acknowledged its use of Nvidia chips but has not clarified whether those specific chips are subject to export restrictions. The company has also stated that it has not intentionally utilized synthetic data generated by OpenAI.
Since 2022, Washington has imposed restrictions on China’s access to advanced AI chips produced by U.S. firms, prompting Beijing to accelerate its efforts toward technological independence. Huawei has confirmed its close collaboration with DeepSeek to ensure that the new V4 models can operate across its full range of high-performance Ascend systems.
Nvidia now faces increased challenges in regaining market share in China. Earlier this year, the Trump administration approved the sale of Nvidia’s powerful H200 chips in China, but reports indicate that shipments have been hindered by disagreements over sales terms in both countries.
Nvidia’s shares remained stable in pre-market trading, while Chinese chip manufacturers saw gains, with Huahong Semiconductor and SMIC rising by 15% and 10%, respectively.
DeepSeek Now Faces Many Rivals
Several Western and some Asian governments have prohibited their institutions and officials from using DeepSeek, citing concerns over data privacy. Despite this, DeepSeek’s models continue to be among the most utilized on international platforms that host open-source models.
In China, DeepSeek’s status as a national champion has diminished due to a surge of competitive offerings from domestic rivals. The company announced that the V4 model is particularly well-suited for AI agent tasks, which require more computing power than standard chatbots.
The success of the V4 model remains uncertain. Analysts from Citi noted that the rapid development of new AI models complicates the identification of a definitive market leader. They believe that success will depend on factors such as monetization, adoption rates, and sustainable revenue from services.
The release of the V4 has negatively impacted the stock prices of competitors, with Zhipu AI and MiniMax both experiencing declines of 9%. The V4 also includes a lower-cost Flash version. Preview versions allow DeepSeek to gather real-world feedback and make adjustments before launching the final product. However, the company has not disclosed a timeline for the completion of the model.
DeepSeek, owned by China’s High-Flyer Capital Management, is reportedly seeking to raise funds at a valuation exceeding $20 billion. Discussions are ongoing with major tech firms like Alibaba and Tencent regarding potential investments.
As reported by www.emirates247.com.
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Published on 2026-04-24 17:03:00 • By FAME Delivered News Desk