BEIJING, China: Chinese AI startup DeepSeek is preparing to launch its next-generation V4 model powered by Huawei chips, signaling a deeper shift toward domestic technology in response to U.S. restrictions.

The new model will run on Huawei Technologies' latest chips, U.S. digital news outlet The Information reported on April 3.

Ahead of the launch, major Chinese technology companies, including Alibaba, ByteDance, and Tencent, have placed bulk orders for Huawei's upcoming chips, totaling hundreds of thousands of units, the report said, citing five people with direct knowledge of the purchases.

The V4 model is expected to be released in the coming weeks, according to the report.

Huawei Technologies and DeepSeek did not immediately respond to requests for comment.

DeepSeek has spent recent months working closely with Huawei and domestic chipmaker Cambricon Technologies to adapt parts of the model's underlying code and conduct testing, the report said, citing two people familiar with the matter.

The company is also developing two additional V4 variants, each designed for different capabilities and built to run on Chinese-made chips.

Earlier this year, Reuters reported that DeepSeek had not shared its upcoming flagship model with U.S. chipmakers to optimize performance, a departure from typical industry practices ahead of a major release.

Instead, the company provided early access to domestic suppliers, including Huawei.

DeepSeek gained global attention last year after releasing its low-cost V3 and R1 models, which triggered a sell-off in technology stocks as investors questioned whether U.S. companies needed to continue spending heavily on AI infrastructure.

Since then, anticipation has grown around the V4 model, which is expected to be a significant step forward for the company's AI capabilities.