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Home » Designed for Next-Gen Chinese Chips! DeepSeek Uses UE8M0 FP8, Huawei Adapts, Breaks Ties with NVIDIA

Designed for Next-Gen Chinese Chips! DeepSeek Uses UE8M0 FP8, Huawei Adapts, Breaks Ties with NVIDIA

Seok Chen by Seok Chen
August 25, 2025
in AI
Reading Time: 2 mins read
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Tech news reports reveal that DeepSeek has officially launched version 3.1 of its AI model, marking a significant milestone in its development. Among the most notable advancements is the platform’s new support for the UE8M0 FP8 standard, a move that has garnered considerable attention within the industry.

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DeepSeek explicitly states in its announcement that UE8M0 FP8 is engineered specifically for the upcoming generation of domestic chips. This integration signifies a substantial leap toward optimizing AI performance on China-made hardware. Experts highlight that this format allows for increased flexibility in supporting complex model inference, which directly enhances both decoding efficiency and computational power. Such developments are seen as paving the way for broader adaptation of large-scale models in China’s AI ecosystem, thereby accelerating the growth of a true domestic AI computing sustainable environment.

But what exactly is UE8M0 FP8, and why does it matter? Industry analysts, including Dr. Liang Bin from Tsinghua University’s AI research institute, explain that UE8M0 FP8 is distinct from NVIDIA’s FP8 standards. The essential difference lies in the precision and resource requirements: NVIDIA’s FP8 (E4M3/E5M2 schemes) offers a balance between accuracy and power consumption, with some formats utilizing fractional bits for increased precision, while the UE8M0 standard opts for a lower-bit, no-decimal approach, favoring reduced power usage and faster computations.

Liang adds that support for UE8M0 FP8 in DeepSeek indicates a firm departure from reliance on NVIDIA’s standards. Domestic chip manufacturers are increasingly aligning with this new protocol, which emphasizes lower power consumption and higher speed—factors critical for next-generation AI devices. He states, “Being compatible with this standard, especially with Huawei actively adapting it, signifies a strategic move away from NVIDIA. This could define the future of inference models in China, with either the DS framework or NVIDIA’s ecosystem serving as the primary options for domestic AI chips.”

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Industry insiders praise Huawei’s aggressive efforts to adapt to this standard, describing it as a strategic gamble that could elevate China’s AI hardware capabilities to unprecedented heights. DeepSeek’s willingness to push such innovations is viewed as a sign of bold leadership in domestically driven AI development, opening up new possibilities for China’s AI large model ecosystem.

In summary, the launch of DeepSeek-V3.1 with support for the UE8M0 FP8 standard marks a strategic shift in the AI hardware landscape, signaling a move toward greater self-reliance and technological independence in China’s AI industry.

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Seok Chen

Seok Chen

Seok Chen is a mass communication graduate from the City University of Hong Kong.

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