The global tech industry is closely monitoring the upcoming launch of a new artificial intelligence model from DeepSeek, as its choice of chips could signal how far China has progressed toward technological independence from the United States.
The company, based in Hangzhou, shook the sector in early 2025 with a low-cost AI system capable of competing with models like ChatGPT, Gemini, and Claude. Since then, anticipation has grown around its next-generation model, known as “V4,” which has yet to be officially released.
At the center of speculation is whether DeepSeek will rely on advanced chips from Nvidia or domestically produced alternatives from Huawei. The decision is seen as a key indicator of China’s progress toward AI self-sufficiency amid ongoing U.S. export restrictions.
According to reports, the V4 model could run on Huawei’s latest chips, which would mark a major milestone for China. Currently, Chinese firms lack access to Nvidia’s top-tier H200 processors, despite some easing of restrictions. Major tech companies such as Alibaba, ByteDance, and Tencent are reportedly stockpiling Huawei chips in anticipation of the launch.
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Founded in 2023, DeepSeek initially emerged from a hedge fund project that invested heavily in Nvidia processors. Its conversational AI model R1, released in January 2025, disrupted markets and even drew attention from Donald Trump, who described it as a “wake-up call” for Silicon Valley.
The upcoming V4 model is expected to be multimodal, capable of generating text, images, and video. Analysts suggest it could once again shake global markets—especially if it combines strong performance with significantly lower costs and open-source accessibility.
However, the transition from Nvidia to domestic chips would require deep technical restructuring, raising questions about feasibility and reliability. Some reports even suggest that DeepSeek may have attempted to bypass restrictions by sourcing advanced Nvidia chips through third countries.
Despite these uncertainties, experts agree that if DeepSeek successfully develops and trains V4 using only Huawei chips, it would represent a major turning point—not just for China’s AI ambitions, but for the broader geopolitical balance in the global technology landscape.
