SINGAPORE—Huawei Technologies is gearing up to test its newest and most powerful artificial-intelligence processor, which the company hopes could replace some higher-end products of U.S. chip giant Nvidia.

The chip, dubbed Ascend 910D, will be Huawei's most powerful AI processor to date according to a report from the Wall Street Journal.

Rumors are emerging that DeepSeek is building its next-generation AI model, R2, based on existing Huawei Ascend 910B chips, with twice the model parameters of R1 and allegedly the world's cheapest for enterprise use.