DeepSeek turns to Huawei chips as US export controls reshape its training plans

DeepSeek is planning to use more domestic chips to train its AI models, with Huawei expected to begin supplying training processors as early as the fourth quarter, according to The Information. The move would deepen the partnership between two Chinese technology companies trying to reduce their exposure to advanced-chip export controls, while DeepSeek prepares a second funding round targeting 50 billion yuan.

DeepSeek Watch analysis

What happened

DeepSeek chief executive Liang Wenfeng told investors that using domestic chips is now a major priority for the company, The Information reports, citing two people with direct knowledge of the matter. Liang reportedly made the comments during a closed-door meeting on 20 September.

The report says Huawei could start delivering training chips to DeepSeek as early as the final quarter of 2026. Training models requires more powerful hardware than running an already-trained model, making the proposed supply relationship more consequential than a routine procurement deal.

DeepSeek is also said to be finalising a second funding round seeking 50 billion yuan, roughly $7.5 billion, at a valuation of 500 billion yuan. Those figures and the chip plans remain reported information, not a public announcement from either company.

Why it matters

This is the practical version of the export-control debate. Restrictions on advanced US chips are not simply blocking access to hardware. They are encouraging a domestic supply chain in which model developers and chipmakers have a reason to adapt together, awkwardly and at enormous expense.

For DeepSeek, more Huawei hardware could provide a route to scale training without relying as heavily on imported accelerators. For Huawei, a demanding AI lab offers a real customer and a testing ground for chips that must compete with far better established alternatives. The partnership will be judged by delivered capacity and useful model performance, not by patriotic PowerPoint.

Our read

The important development is not that DeepSeek wants alternatives. It is that the company appears to be making domestic hardware part of its training strategy while seeking a very large new financing round. That combination suggests a long-term infrastructure bet rather than a short-term workaround.

The Information’s account is based on people with direct knowledge, and the supplied evidence does not include an official response from DeepSeek or Huawei, independent chip benchmarks, or confirmation that deliveries will happen on schedule. Still, the direction is clear enough to watch: export controls are helping turn AI compute into a strategic partnership question.

What to watch

• Whether Huawei confirms a delivery timetable or identifies the chips involved.
• Whether DeepSeek’s funding round closes on the reported terms.
• How much training capacity the domestic hardware can provide in practice.
• Whether DeepSeek reports changes to model timelines, performance or costs.

Discussion spark: If export controls push AI labs towards domestic chips, should success be measured by technical performance alone, or by whether the partnership creates a genuinely independent supply chain?

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