DeepSeek plans to buy 160,000 Huawei chips as China aims to wean itself off Nvidia

DeepSeek’s procurement of Huawei chips marks a significant step toward China’s AI computing self-reliance. This move will catalyze the scaling of Huawei’s Ascend chips in data centers, accelerating ecosystem development across software stacks, toolchains, and system integrators. However, domestic manufacturing still lags behind, posing supply chain risks. From a policy perspective, this reflects a strategic push to reduce reliance on Nvidia, though short-term substitution remains challenging. Competitors like Cambricon and Wallbreak may intensify their chip deployment strategies to capture market share. Over the next 12–24 months, China’s AI chip market will be shaped by policy momentum and technological catch-up, with Huawei’s ecosystem emerging as a pivotal force.