Huawei prepares to challenge Nvidia with new AI chip in China

China’s Huawei Technologies is preparing to launch the Ascend 910C, a new AI chip that will rival Nvidia’s leading position in China’s artificial intelligence (AI) market. The Wall Street Journal reported that major Chinese internet and telecom companies like Baidu, ByteDance and China Mobile are testing the chip ahead of its expected debut in October.

The Ascend 910C’s performance is said to be equivalent to Nvidia’s H100, a chip currently banned from being sold in China due to US sanctions. Last year’s sanctions have prevented Nvidia from exporting its most advanced chips to Chinese customers on national security grounds. In response, Nvidia offered modified versions of its chips for the Chinese market but these have reduced capabilities compared to the H100. This new chip by Huawei could potentially fill this gap presenting a strong alternative to Chinese companies.

Huawei counters US sanctions with new AI chip

Huawei’s unveiling of the Ascend 910C comes as businesses in China look increasingly towards domestic alternatives amid ongoing trade tensions with America. If successful, the Ascend 910C could disrupt Nvidia’s hold on the market for AI chips used in China. The Wall Street Journal said initial orders for the chip could exceed 70k units, worth around $2bn. This demand reflects how eager Chinese companies are becoming to adopt their technology when faced with US export bans.

The product has been watched closely by industry experts as it represents another attempt by the company to wean China off foreign technologies. By establishing itself as a viable competitor against Nvidia inside China – where both companies have large presences – Huawei could help shape the future direction of AI chips within the country.

Major Chinese firms put Huawei’s AI chip to the test

ByteDance, Baidu and China Mobile – some of the biggest names in Chinese tech – are set to test the Ascend 910C as soon as it is available. These firms are all heavily invested in AI research and development, which means they need powerful and efficient chips to run their operations. Trying out Huawei’s chip suggests that it may meet the high-performance requirements normally associated with Nvidia’s H100.

With the October release date approaching, industry watchers are expecting more information on what the Ascend 910C can do and how it stacks up against Nvidia products. If this chip is successful, it will be a major benefit for Huawei and China’s wider AI sector as it could speed up its shift towards home-grown technology.

Over the next few months, both local and global markets will likely closely watch how well Ascend 910C performs in various applications. If reports about its capabilities turn out to be true, then this could change Huawei’s position and create new competitive dynamics among AI chip makers targeting the Chinese market which will have implications reaching far beyond Huawei and Nvidia.