Huawei Set to Launch AI Chip to Compete with Nvidia

Huawei Technologies is nearing the release of a new artificial intelligence chip, the Ascend 910C, aimed at challenging Nvidia’s dominance in the AI hardware market, according to a report by the Wall Street Journal. The chip is currently being tested by major Chinese internet and telecom companies, including ByteDance, Baidu, and China Mobile.

Huawei has reportedly informed potential clients that the Ascend 910C is comparable to Nvidia’s H100 chip, a key product that U.S. regulators have restricted from being sold to Chinese customers due to national security concerns. These sanctions have pushed Nvidia to develop less powerful alternatives, such as the H20 chip, specifically tailored for the Chinese market.

With plans to begin shipping the Ascend 910C as early as October, Huawei is positioning itself as a significant competitor in the AI chip sector. Initial negotiations suggest that orders for the new chip could exceed 70,000 units, potentially generating around $2 billion in revenue.

Huawei did not immediately respond to requests for comment on the matter.