Huawei Develops AI Chip to Compete with Nvidia

Huawei, a Chinese technology company based in Shenzhen, has reportedly developed a new, powerful artificial intelligence (AI) chip called the Ascend 910D, which aims to compete with high-end processors from Nvidia. The company is preparing to begin testing this chip, with local Chinese tech firms expected to receive the initial samples by the end of May. These tests are still in early stages, and further evaluations will be necessary to determine the chip's performance and readiness for commercial use. Huawei hopes that the Ascend AI processor will outperform Nvidia’s H100 chip, which was used for AI training in 2022.

In addition to the new chip, Huawei plans to ship over 800,000 units of its earlier models, the Ascend 910B and 910C, to various clients, including state-owned telecom operators and private AI developers such as ByteDance, the parent company of TikTok. The Chinese government has also urged domestic AI developers to increase purchases of locally produced chips amidst escalating trade tensions with the United States.

Meanwhile, Nvidia has reported potential charges of around $5.5 billion related to its AI chip inventory due to export restrictions imposed by the US government, which has added some of Nvidia’s most advanced chips, like the H20, to its list of restricted exports to China. Certain critical components for AI chips, such as high-bandwidth memory modules, are also restricted from export to China.

Huawei is focusing on developing more efficient and faster systems, such as the CloudMatrix 384, a computing platform introduced in April that connects multiple Ascend 910C chips to enhance performance through chip arrays rather than individual processor improvements.

China’s leadership, including President Xi Jinping, has emphasized the importance of self-reliance in AI development. Xi has called for increased efforts in technological innovation, industrial advancement, and the creation of independent AI hardware and software systems, aiming to reduce dependence on foreign technology.

Amid ongoing trade disputes, the US has restricted sales of certain Chinese tech components, including Nvidia’s most powerful processors, and has imposed export controls on key AI hardware parts. China maintains that it is not engaging in talks with the US regarding trade and insists that the US should cease creating confusion in the technological arena.