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.

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 is in early development and will undergo a series of tests before it will be deemed ready for customer use.