A Huawei logo is seen at the Mobile World Congress (MWC) in Shanghai on June 26, 2024. (Photo : STRSTRSTR/AFP via Getty Images)
China's Huawei Technologies is gearing up to launch a new artificial intelligence chip, the Ascend 910C, aimed at competing with Nvidia's advanced processors in the Chinese market. As shared by Reuters, the new chip is currently being tested by several Chinese internet and telecom companies, including TikTok parent company ByteDance, Baidu, and China Mobile.
Huawei has informed potential clients that the Ascend 910C is comparable to Nvidia's H100, which has been restricted from sale in China due to U.S. sanctions.
The comes as the US government continues to impose strict regulations on the sale of advanced technology to China, citing national security concerns, per VCPost.
Last year, these regulations led to a ban on Nvidia selling its H100 chips to Chinese customers. In response, Nvidia developed three alternative chips for the Chinese market, including the H20, but these have reduced computing power compared to the H100 due to compliance with U.S. sanctions.
Huawei's latest chip is expected to begin shipping as soon as October, with demand already high among Chinese companies. Initial negotiations suggest that orders for the Ascend 910C could exceed 70,000 units, potentially generating around $2 billion in revenue for Huawei.
As Huawei prepares to challenge Nvidia in the AI space, the new chip could have major implications for the technology sector in China. With U.S. restrictions limiting the availability of Nvidia's most powerful chips, Huawei's Ascend 910C could become a critical resource for Chinese companies looking to advance their AI capabilities.
Eventually, the success of this chip could further intensify the ongoing tech rivalry between the U.S. and China.