DeepSeek V4 is the catalyst China needed. This artificial intelligence (AI) model, developed by a quantitative hedge fund specializing in trading algorithmic High-Flyer, has been designed natively to operate seamlessly with Chinese chips. The Chinese government’s strategy, aimed at countering U.S. pressures, has involved bypassing reliance on advanced GPUs from companies like Nvidia, AMD, and Cerebras, largely restricted from entry into the Asian market due to previous U.S. administrations. Beijing’s initiative to develop indigenous solutions is a direct response to these challenges.
Executing this strategy, however, is far easier said than done. Enter DeepSeek V4, which has emerged as the essential asset that China needs. The launch of this AI model has enabled several Chinese chip designers to achieve what was previously the exclusive domain of Nvidia: full compatibility with the High-Flyer AI model right from the start.
A Great Opportunity for Huawei, Cambricon, Moore Threads, and Hygon
The arrival of DeepSeek V4 marks a watershed moment in China’s tech landscape. With strong adoption anticipated, AI chip designers are racing to ensure their products are compatible with this new model. Each company is acutely aware that missing out on this opportunity could mean losing a foothold in the largest consumer market in the world, a market characterized by remarkable purchasing power and a vast population of potential consumers.
Huawei is one of the companies that benefited most from the arrival of DeepSeek V4.
Notably, Huawei stands to gain significantly from DeepSeek V4’s arrival. Its entire range of AI GPUs is compatible with the new model, and the Ascend 950PR chip has emerged as the primary inference solution. For clarity, inference refers to the computational process executed by language models to generate responses tailored to user queries.
In the wake of DeepSeek V4’s launch, major Chinese tech giants such as Alibaba, ByteDance, and Tencent have reportedly placed orders for hundreds of thousands of Ascend 950PR processors, as per a Reuters report. Yet, Huawei is not alone in reaping the benefits. Cambricon Technologies, a company founded by the Chen brothers, has adapted the open-source vLLM inference framework to ensure compatibility and has made the code available on GitHub.
Moreover, Moore Threads is collaborating with the Beijing Academy of Artificial Intelligence to optimize DeepSeek V4 on their MTT S5000 card, utilizing the FlagOS software stack. Hygon has also undertaken significant optimization of this model on its DCU platform, positioning its hardware as an appealing option for industrial applications. While DeepSeek V4’s capabilities may lag behind its more advanced American counterparts, its future within China appears promising.
Image | Huawei
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