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Tygo Cover > AI > DeepSeek Partners with Huawei in a Blow to Nvidia’s Dominance

DeepSeek Partners with Huawei in a Blow to Nvidia’s Dominance

Hashim Haque
Last updated: September 2, 2025 3:25 am
Hashim Haque
AI
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5 Min Read
The DeepSeek logo and the Huawei logo joining together, symbolizing DeepSeek partners with Huawei with their new AI chip.
A Blow to Nvidia: Chinese AI Star DeepSeek Ditches US Chips for Huawei

The global AI arms race has just entered a new, defiant chapter. In a move that signals a seismic shift in the tech landscape, rising Chinese AI star DeepSeek partners with Huawei for the critical AI chips needed to train its next-generation models.

This decision to embrace Huawei’s domestic hardware over the industry-standard Nvidia GPUs is more than just a business deal; it’s a bold declaration of China’s growing technological self-sufficiency and a direct blow to America’s efforts to contain its progress.

For years, the unwritten rule of AI has been that to build a world-class model, you need world-class chips from Nvidia. DeepSeek, a company that has impressed the world with its powerful open-source models, is now betting that this is no longer true.

This article breaks down this pivotal partnership, explores the technology behind Huawei’s chips, and analyzes what this means for the future of the global AI power balance.

The Landmark Deal: DeepSeek and Huawei Ascend

According to the report from Dataconomy, DeepSeek will be utilizing Huawei’s Ascend 910D AI chips for its future large language model (LLM) training.

This is a significant endorsement of Huawei’s hardware, which has been developed under intense pressure from US sanctions designed to cripple China’s semiconductor industry.

DeepSeek, which was founded by a team with roots in the quantitative trading world, has rapidly gained a reputation for its highly efficient and powerful AI models.

For such a prominent startup to choose a domestic alternative to Nvidia is the strongest signal yet that China’s homegrown AI ecosystem is becoming a viable, self-contained force.

The Technology: Is Huawei’s Ascend a True Nvidia Competitor?

The central question is whether Huawei’s Ascend 910D can truly compete with Nvidia’s dominant H100 and H200 GPUs.

While direct, independent benchmarks are scarce, the industry consensus is that while the 910D may not match the raw performance of Nvidia’s top-tier chips, it is a remarkably capable alternative and, crucially, it is available without restriction to Chinese companies.

Huawei has been pouring billions into its semiconductor division, HiSilicon, to build a domestic supply chain. According to official Huawei sources, the Ascend series is designed to create a “second choice” in a market completely dominated by one player.

The partnership with DeepSeek will serve as a massive, real-world test case, proving to the world whether China’s domestic chips are ready for the big leagues.

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The Geopolitical Impact: A Failure of Sanctions?

This partnership is a direct consequence and a symbolic failure of the stringent US export controls aimed at slowing China’s AI progress.

By restricting access to Nvidia’s most advanced chips, the US inadvertently created a massive incentive for Chinese tech companies to accelerate their own domestic hardware development.

The DeepSeek-Huawei deal shows that this strategy is bearing fruit. Instead of crippling China’s AI ambitions, the sanctions have forced the creation of a parallel, non-American AI supply chain.

This could lead to a future where there are two distinct, competing global AI ecosystems: one centered around US technology (Nvidia, Google, OpenAI) and another around Chinese technology (Huawei, Baidu, Tencent).


Frequently Asked Questions (FAQ)

1. Who or What is DeepSeek?

DeepSeek is a prominent Chinese artificial intelligence startup known for creating powerful and efficient open-source large language models (LLMs). They are considered one of the rising stars in China’s AI scene.

2. What is the Huawei Ascend 910D?

The Ascend 910D is a powerful AI accelerator chip designed and produced by Huawei. It is the company’s flagship offering and the primary domestic alternative to Nvidia’s high-end GPUs for training large AI models in China.

3. Why can’t Chinese companies just buy Nvidia chips?

Due to US government export controls and sanctions, Chinese companies are barred from purchasing the most advanced AI chips from American companies like Nvidia. They are only able to buy lower-powered, “export-friendly” versions.

4. Does this mean China no longer needs US technology for AI?

It’s a significant step towards self-sufficiency, but China’s semiconductor industry still relies on foreign technology in other parts of the supply chain, such as chip manufacturing equipment. However, for the crucial task of AI model training, this deal proves that a viable domestic alternative now exists.

TAGGED:AIArtificial IntelligenceChinaDeepseekHuawaiNvidia
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ByHashim Haque
Based in San Mateo, California, Hashim Haque is a Data Scientist who lives at the intersection of data and technology. With a passion for uncovering the stories hidden within the numbers, he brings a unique, analytical perspective to the world of tech. Hashim's writing for TygoCover decodes the data behind the headlines, offering readers a deeper understanding of AI, emerging trends, and the quantitative forces shaping our digital future.
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