Huawei Technologies is on the verge of launching a new artificial intelligence chip, the Ascend 910C, as it seeks to compete with Nvidia in the Chinese market despite ongoing U.S. sanctions, the Wall Street Journal reported on Tuesday.
The Ascend 910C is currently undergoing testing by several Chinese internet and telecom companies. According to the report, Huawei has assured potential clients that the new chip rivals Nvidia's H100 in performance.
Huawei did not immediately respond to a request for comment from Reuters.
The U.S. government imposed restrictions last year that barred Nvidia from selling its advanced H100 chips to Chinese customers, citing national security concerns. In response, Nvidia introduced the H20 series of chips, specifically modified for the Chinese market. However, these chips have had their computing power significantly reduced in compliance with U.S. sanctions.
Huawei aims to begin shipping the Ascend 910C as early as October. Major Chinese companies, including ByteDance, Baidu, and China Mobile, are reportedly interested in acquiring the new chips. Initial negotiations suggest that orders could exceed 70,000 units, potentially totaling around $2 billion.
Huawei’s new chip could significantly impact the AI hardware landscape in China, offering an alternative to Nvidia's products in a market constrained by geopolitical tensions.
