The Chinese AI company DeepSeek is reportedly planning to build a large data center in Inner Mongolia using at least 160,000 Huawei AI chips, according to Bloomberg. This would make it one of the largest clusters of Chinese hardware, potentially challenging U.S.-based competitors like NVIDIA. While Huawei’s Ascend 950DT chip will be used, DeepSeek intends to initially avoid using it for training new models. The move reflects China’s broader effort to reduce reliance on U.S. semiconductor suppliers amid export restrictions. However, production delays could occur due to supply chain constraints, particularly regarding high-end storage components. DeepSeek has significantly increased infrastructure spending in 2026, allocating over 11 billion yuan in the first seven months alone, which includes rented servers and hardware. Recent reports indicate the company has raised API prices, adding financial pressure.
Bias read (Progressive): The article frames the development as part of China’s strategic shift away from U.S. technology dominance, emphasizing national self-reliance and geopolitical tensions. It highlights the implications for companies like NVIDIA and portrays Huawei’s role as a positive alternative within China’s tech-s



