Huawei Gears Up to Challenge Nvidia with New AI Processor

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Huawei Technologies is preparing to test its latest and most advanced artificial intelligence processor, the Ascend 910D, with the aim of challenging Nvidia’s dominance in the high-end AI chip market. According to a report from The Wall Street Journal, Huawei has approached several Chinese tech companies to evaluate the new chip’s capabilities, with the hope that the Ascend 910D will outperform Nvidia’s flagship H100 model.

The first batch of samples for the Ascend 910D is expected to be delivered to these companies as early as late May 2025. In addition to this, Reuters reported that Huawei plans to begin mass shipments of its advanced Ascend 910C AI chip to Chinese customers in the coming month. This move is seen as a significant step in Huawei’s ongoing efforts to reduce China’s reliance on foreign chipmakers, particularly in light of ongoing tensions with the United States.

The development of Huawei’s new chip comes at a time when Nvidia’s market position in the AI hardware sector has been firmly established, with its products being widely used for AI model training and decision-making processes. However, Chinese tech firms like Huawei have faced significant challenges in developing chips that can compete with Nvidia’s offerings, which are widely regarded as the most powerful in the industry.

The competition has intensified since the United States imposed restrictions on the sale of Nvidia’s advanced AI chips to China, particularly its H100 model, in an effort to limit China’s technological advancements in areas with potential military applications. The U.S. has also restricted access to Nvidia’s B200 chip, further compounding challenges for Chinese companies.

In response to these restrictions, Huawei is aiming to leverage its own advancements in AI chip technology, hoping that the Ascend 910D will be able to compete with Nvidia’s products on both performance and cost. This has led to a notable dip in Nvidia’s stock price, which saw a 1.4% decrease in premarket trading following reports of Huawei’s new developments.

Despite the challenges, Huawei’s efforts represent a major push for China to become more self-reliant in the AI hardware space and to develop alternatives to U.S. products. The outcome of these tests and the success of the Ascend 910D will be closely watched by the tech industry, as it could signal a shift in the balance of power in the global AI chip market.


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