DeepSeek readies Huawei chip cluster for Inner Mongolia

DeepSeek, a Hangzhou-based AI developer, is set to install a cluster of at least 160,000 Huawei Ascend 950DT artificial intelligence accelerators at a data centre in Inner Mongolia. This deployment could potentially become one of the largest clusters built around Huawei's advanced AI processors. The chips are primarily intended for inference, where trained models generate responses, rather than the more computationally intensive task of training frontier systems.

DeepSeek continues to use Nvidia accelerators for training, indicating that domestic processors still lag behind US hardware in certain workloads. The planned installation is part of a larger gigawatt-scale computing project in Ulanqab, situated about 350 kilometers northwest of Beijing. DeepSeek aims to bring at least part of the facility online by late 2027 or early 2028, depending on Huawei's ability to manufacture and deliver sufficient processors.

However, both DeepSeek and Huawei have not publicly confirmed the chip order, and the scale and timing remain subject to change due to constraints in high-end memory and other advanced components needed for production. The scale and timing of this deployment could significantly impact the availability of high-end computing resources in China, especially as AI labs, cloud providers, and internet groups compete for scarce accelerators capable of supporting larger models and growing inference demand.