Deepseek plans the largest known Huawei chip cluster with 160,000 processors in Inner Mongolia
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Deepseek plans to deploy at least 160,000 of Huawei's next-generation Ascend-950DT chips in a massive data center in Inner Mongolia, which would make it the largest known Huawei chip cluster. According to Bloomberg, these chips would only handle inference workloads, while Deepseek would continue using Nvidia hardware for heavier training tasks. The plan represents a significant step toward reducing China's dependence on Nvidia, but Huawei may not be able to deliver the full order for over a year due to production limits and memory chip shortages. The memory bottleneck could ease as China's top memory maker, CXMT, has begun producing small batches of HBM3E for the first time. However, CXMT remains three to five years behind Samsung, SK Hynix, and Micron, which are already mass-producing HBM4. Deepseek's order is part of a larger Chinese government initiative to strengthen its domestic chip industry while staying competitive in AI.
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