# DeepSeek’s delayed V4 model and a new U.S. State Department warning are now shaping the same story.

*genai · news · 2026-04-26 · Markets Insider*

## Key points

- DeepSeek delayed its V4 AI model to optimize it specifically for Huawei's Ascend chips.
- Chinese firms are now developing AI models primarily for domestic chips, moving away from foreign hardware.
- The U.S. State Department warns that Chinese firms are using distillation to replicate American AI systems.
- Some Western governments have begun restricting DeepSeek models over data and security concerns.

**Companies:** Nvidia, Advanced Micro Devices, Taiwan Semiconductor Manufacturing Company, DeepSeek
**Countries:** China, United States

[Read the full story on Markets Insider](https://markets.businessinsider.com/news/stocks/ai-splits-into-two-worlds-as-china-pushes-huawei-chips-raising-stakes-for-nvidia-and-amd-1036063060)

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