Observed Signal · Aug 14, 2025 · Product Delay · Source: Trending Topics · Impact: 3/5 · Sentiment: Neutral
DeepSeek R2 Model Delayed by Huawei Chip Problems
Chinese AI company DeepSeek is delaying the launch of its R2 model, originally planned for May, due to persistent technical problems training the model on Huawei's Ascend chips. Chinese authorities encouraged DeepSeek to use Huawei processors instead of Nvidia systems after its R1 release. Despite assistance from Huawei engineers, DeepSeek failed to achieve a successful training run on the Ascend chip. The company will now use Nvidia chips for training and Huawei hardware for inference. This setback illustrates the limitations of China's domestic chips compared to US rivals, complicating Beijing's push for technological independence. DeepSeek faces a competitive disadvantage against Alibaba's Qwen3 model. Nvidia remains a key player, having recently agreed to share some China revenue with the US government to resume H20 chip sales.
DeepSeek's R2 delay highlights China's chip limitations, potentially affecting the supply of competitive AI models used in advertising and tech infrastructure.
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Key Takeaways & Evidence Grounding
- DeepSeek delayed its R2 model launch due to training difficulties with Huawei Ascend chips.
- Chinese authorities encouraged DeepSeek to use Huawei's Ascend processors instead of Nvidia systems.
- DeepSeek failed to run a successful training on Ascend despite support from Huawei engineers.
- DeepSeek will use Nvidia chips for training and Huawei hardware for inference.
- The delay creates a competitive disadvantage for DeepSeek against Alibaba's Qwen3 model.
Connected Companies & Entities
4 Entities mapped“The Chinese AI company DeepSeek is delaying the release of its new model after failing to train it with Huawei chips....”
“Huawei's Ascend processors instead of Nvidia's systems, and Huawei engineers were sent to DeepSeek's office....”
“Nvidia chips for training and Huawei hardware for inference, and Nvidia recently agreed to give the US government a share of its China reven...”
“DeepSeek faces a competitive disadvantage against rivals like Alibaba with its Qwen3 model....”
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