DeepSeek to Deploy 160,000 Huawei AI Chips in Inner Mongolia Data Center

DeepSeek is preparing to install at least 160,000 Huawei Ascend 950DT artificial intelligence accelerators in a new facility in Ulanqab, Inner Mongolia. This site lies approximately 350 kilometres northwest of Beijing. The project aims to operate on a roughly gigawatt-scale computing platform and targets initial operations by late 2027 or early 2028. DeepSeek intends to use these chips primarily for inference, which involves running trained models and generating responses. The company continues to rely on Nvidia accelerators for training frontier systems because domestic processors still lag in performance for that task. Neither DeepSeek nor Huawei has publicly confirmed the specific order yet. Supply constraints, particularly regarding high-end memory and advanced components, could delay production by more than a year as Huawei fulfills this massive demand alongside other domestic and international clients.