NVIDIA Is Reportedly Giving Up On China As A Lost Cause Amid An Unassailable Lead From Huawei, As DeepSeek Snubs H20 GPUs For 160,000 Units Of Huawei’s Ascend 950DT Chips
DeepSeek ordered 160,000 Huawei Ascend 950DT chips, valued at ~$2.56B, for its data center in Mongolia, bypassing NVIDIA's H200 GPUs. Huawei's chip production is limited, with delivery taking up to a year. NVIDIA is reportedly withdrawing from the Chinese market.
How this was made
The 30-second read
Why it matters
The contract highlights a strategic shift toward Chinese AI hardware, potentially reshaping supply dynamics and affecting sentiment toward U.S. chip makers.
Market read
A multi‑billion dollar chip order signals a possible realignment in the AI hardware market, with implications for both Chinese and U.S. chip manufacturers.
What to watch
Huawei's limited production capacity and the year‑long delivery timeline may constrain DeepSeek's rollout, limiting immediate market impact.
Background
DeepSeek, an AI startup, announced a $2.56 billion order for 160,000 Huawei Ascend 950DT chips to power a 1 GW data center in Inner Mongolia, bypassing NVIDIA's H200 GPUs.
Market effects
The AI‑hardware sector may see a shift as DeepSeek opts for Huawei chips over NVIDIA, hinting at potential demand for non‑U.S. suppliers.
China's AI ecosystem could benefit from the large order, while U.S. AI chip makers may face heightened competitive pressure.
The $2.56 billion contract underscores the growing split between U.S. and Chinese AI supply chains.
Counterpoint
NVIDIA may still retain dominance in other regions; the DeepSeek order could be an isolated case rather than a broader trend.
Key entities
- companyDeepSeek
AI startup placing the chip order.
- companyHuawei
Supplier of Ascend 950DT AI chips.
