China’s Huawei develops new AI chip, seeking to match Nvidia: WSJ

China’s Huawei develops new AI chip, seeking to match Nvidia: WSJ

  • 14 hours ago
  • businesstimes.com.sg
  • Keywords: AI

China's Huawei is developing its Ascend 910D AI chip to rival Nvidia's H100, aiming for mass production in coming months. Despite U.S. restrictions limiting access to Nvidia's advanced chips, Huawei seeks to compete in AI processing technology.

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Estimated market influence

Huawei Technologies

Positivesentiment_satisfied
Analyst rating: N/A

Developed new AI chip aiming to compete with Nvidia's H100 and B200.

Nvidia

Nvidia

Negativesentiment_dissatisfied
Analyst rating: Strong buy

Facing competition from Huawei's Ascend 910D and 910C chips, which aim to match their products.

Context

Analysis of Huawei's New AI Chip Development

Key Developments

  • Huawei Ascend 910D: Chinese tech giant Huawei is testing its new AI processor, the Ascend 910D, aiming to surpass Nvidia’s H100 in power.
  • Mass Shipments Plan: Huawei plans to begin mass shipments of the advanced Ascend 910C chip to Chinese customers as early as next month.
  • Testing Phase: The company has approached Chinese tech firms to test the technical feasibility of the Ascend 910D, with the first batch of samples expected by late May 2025.

Market Impact

  • AI Chip Market Growth: The global AI chip market is expanding rapidly, driven by demand from major tech companies like Google and Microsoft for training AI models.
  • Disruption Potential: If successful, Huawei’s new chips could challenge Nvidia’s dominance in the high-end AI chip market, particularly in China.

Competitive Landscape

  • Nvidia’s Leadership: Nvidia currently leads the AI chip industry, with its H100 and B200 chips being critical for training advanced AI models.
  • US Export Restrictions: Washington has restricted exports of advanced AI chips to China, including Nvidia’s B200, to limit Chinese military advancements.

Strategic Considerations

  • Huawei’s Ambitions: Huawei aims to reduce reliance on foreign chipmakers and boost its position in the global AI ecosystem.
  • Technical Challenges: The company faces significant technical hurdles in matching or exceeding Nvidia’s performance while navigating US export restrictions.

Long-term Effects

  • Global Chip Manufacturing: Success for Huawei could shift dynamics in global chip manufacturing, potentially increasing competition and innovation.
  • Regulatory Impact: US restrictions may slow China’s AI progress but could also accelerate domestic chip development efforts.

Market Implications

  • Potential Revenue Growth: If the Ascend chips achieve their performance goals, they could generate significant revenue for Huawei and strengthen its AI ecosystem in China.
  • Domestic Demand: Chinese tech companies are likely to benefit from localized AI solutions, reducing dependency on foreign technology.

This development underscores the growing importance of AI chip innovation and the strategic stakes involved in the global tech competition.