Huawei to Introduce New AI Chip to Compete with Nvidia

China’s Huawei Technologies is about to unveil a new chip designed for artificial intelligence, the Ascend 910C, which aims to challenge Nvidia’s dominance in the Chinese market.

This move comes in response to recent US sanctions that have impacted Nvidia’s ability to sell its advanced chips in China.

Testing and Performance Comparison:

According to a Wall Street Journal report, the Ascend 910C is currently being tested by various Chinese internet and telecom companies.

Huawei has assured potential clients that the new chip is comparable in performance to Nvidia’s H100, which has been restricted from sale in China due to US national security regulations.

Impact of US Sanctions on Nvidia:

Last year, US regulators imposed restrictions that prevented Nvidia from selling its advanced chips, including the H100, to Chinese customers.

In response, Nvidia introduced three alternative chips, including the H20 series. However, these chips’ computing power was significantly reduced compared to the H100, in accordance with US sanctions.

Huawei Shipping Plans and Market Interest:

The Wall Street Journal report indicates that Huawei plans to commence shipments of the Ascend 910C as early as October.

Major Chinese companies, such as ByteDance (parent company of TikTok), Baidu, and China Mobile, are reportedly interested in acquiring the new chips.

Initial negotiations suggest that orders for the Ascend 910C are expected to exceed 70,000 units, with an estimated total value of around $2 billion.