Huawei is attacking Nvidia with a new AI chip.
Chinese tech giant Huawei is reportedly on the cusp of introducing AI-driven processors, aiming to challenge Nvidia's market dominance in China. Several corporations are already prepared to pay billions for these new chips.
Huawei is set to challenge world leader Nvidia with a new generation of specialized processors, according to a newspaper report. After testing by internet and telecom companies, Huawei's "Ascend 910C" chip is said to be nearing market launch, the Wall Street Journal reported. On par technologically with Nvidia's H100 processor tailored for the Chinese market, it is expected to hit the market in October. Huawei was initially unavailable for comment.
To curb China's technological and military rise, the U.S. has increasingly restricted high-tech exports to the country. Chinese companies have consequently intensified their research to develop their own processors.
Huawei's AI chips are considered the most powerful available in China that aren't from Nvidia. To defend its market share, Nvidia has introduced several toned-down versions of its chips for the Chinese market in recent months.
The report states that Bytedance (the parent company of TikTok), search engine operator Baidu, and telecom giant China Mobile are interested in Huawei's "Ascend 910C". Initial orders could involve over 70,000 processors, with a total order value of around two billion USD. At this price point, the chips would be on par with Nvidia's competing products, which can also cost several thousand dollars each.
Huawei's new AI-driven processors, aiming to challenge Nvidia's market dominance, have attracted interest from notable corporations such as Bytedance, Baidu, and China Mobile. Despite Nvidia introducing toned-down versions of its chips for the Chinese market, Huawei's "Ascend 910C" is projected to offer comparable performance at a similar price point.
