Huawei readies new AI chip to challenge Nvidia’s dominance in China
It will fill the gap left by US sanctions on the Chinese AI chip market.
In a surprising turn of events, Huawei Technologies is poised to shake up the AI chip market with its new Ascend 910C processor.
This move, according to a recent Wall Street Journal report, directly challenges Nvidia's stronghold in China, where the U.S.-based company previously held roughly 90% of the AI semiconductor market.
The Ascend 910C isn't just another chip off the old block. Per the WSJ, it's being touted as comparable to Nvidia's H100, a claim raising eyebrows in tech circles. This bold assertion comes in the wake of U.S. sanctions restricting advanced chip sales to Chinese customers, creating a gap Huawei seems eager to fill.
Nvidia, unable to ship its high-end chips to China in the face of the US restrictions, scrambled to introduce China-specific chips, including the H20, albeit with capped computing power. Meanwhile, Huawei has been quietly working on a homegrown AI chip solution that could once again shift the market dynamics.
Loy Okezie
Chinese tech giants like ByteDance, Baidu, and China Mobile are already putting the chip through its paces, says the Journal. With an October shipping target, Huawei's timing couldn't be more strategic. The demand is also staggering—initial negotiations suggest orders could exceed 70,000 chips, potentially raking in a cool $2 billion.
This development isn't just about Huawei flexing its tech muscles. It's a testament to China's growing technological capabilities in the face of international constraints. Huawei has already demonstrated its ability to innovate under pressure with its homegrown operating system, HarmonyOS, recently surpassing Apple's iOS in popularity within China. The success was on the back of a strong domestic demand for its Mate 60 series 5G smartphone launch which also boasts a homegrown chip.
While the performance of the new chip performing similarly to Nvidia's industry-leading H100 chip remains speculative, it highlights the Chinese tech giant's effort to counteract the effects of U.S. sanctions and challenge Nvidia's dominance in the region. The success of this endeavour could mark a turning point not only for Huawei but also for China's broader ambitions in semiconductor technology.
