DeepSeek is reportedly planning to deploy 160,000 Huawei Ascend 950DT chips in a new data center in Inner Mongolia, a significant move amid ongoing US restrictions on advanced AI hardware in China.

• DeepSeek plans to use the Huawei chips primarily for inference, while continuing to rely on available Nvidia hardware for intensive model training.
• The new data center in Ulanqab is set to be gigawatt-scale and partially operational by late 2027 or early 2028.
• This strategic shift highlights China's effort to build domestic AI capabilities, with Huawei expecting a substantial jump in its AI chip revenue to approximately $12 billion in 2026.