Huawei Competes with Nvidia in AI Chip Sector in China

Huawei seeks to outperform Nvidia in China's AI chip market amid US sales slowdown.

Huawei Competes with Nvidia in AI Chip Sector in China

Huawei, a Chinese technology giant, is preparing to strengthen its position as the market leader in artificial intelligence (AI) chips.

Numerous prominent technology companies are currently investigating prospects in the domain of artificial intelligence.

However, several market observers perceive Huawei’s emphasis on the AI chip sector as a rivalry to Nvidia, particularly in light of the recently declared restriction on Nvidia’s exports of sophisticated artificial chips to China.

Huawei acquired an order from Chinese tech giant Baidu as it began to establish market confidence and gain ground in the AI Chip Market in the wake of the US Government’s restriction.

Huawei’s Entry into the AI Chip Industry

Notably, Huawei unveiled its first AI chip, Ascend 910, four years ago, in 2018.

Although it was introduced in 2018, its official release occurred in 2019 as part of a portfolio-building strategy for full-stack AI.

Huawei endeavored to establish itself as the preeminent provider of computing power, particularly in China, by penetrating the AI Chip Market.

Meanwhile, Nvidia captured most of the AI chip market in 2020 and 2022, respectively, with the introduction of the A100 and H100 chips, leaving Huawei with little business.

However, with the US government’s restriction on Nvidia chip sales to China, Huawei now has the opportunity to make a significant comeback and reestablish itself.

In response, Huawei is anticipated to introduce the Ascend 910B, an upgraded iteration of the 910 AI chip.

Nevertheless, an official declaration has yet to be issued.

Regarding the as-yet-to-be-announced A 910B, reports and experts have speculated that it is inferior to Nvidia’s chip.

Huawei, on the other hand, is the only sophisticated domestic option in China following Nvidia’s sales halt.

Is China benefiting from Huawei’s entry into the AI chip market?

Following the termination of Nvidia’s AI chip sales to China by the United States, Huawei will have the opportunity to enter the $7 billion AI chip market in China, which is anticipated to be a lucrative venture.

Moreover, the stronghold of Huawei, with its revamped A 910B chip, will not only be a strong counter for Nvidia, which ruled the AI Chip market but also a win for China against the rival US.

Experts further assert that Huawei can easily bridge the existing gap and surpass Nvidia in terms of AI chip quality with the assistance and investments of the Chinese government in AI and semiconductors.