The AI chip market, led by NVIDIA, is experiencing explosive growth, fueled by the rise of generative AI and the burgeoning era of AI-powered PCs and smart devices. However, US trade restrictions on AI hardware are creating significant challenges for Chinese tech giants, who heavily rely on NVIDIA chips like the H100. Companies such as ByteDance, Alibaba, and Baidu are finding it increasingly difficult to secure these vital components.
With NVIDIA no longer able to ship its flagship gaming GPU, the GeForce RTX 4090, to China, an opening has emerged for Huawei to take center stage. The Chinese tech giant is aggressively developing new AI hardware specifically tailored to the Chinese market. Their latest offering, the Ascend 910C AI chip, is currently undergoing rigorous testing and has reportedly been seeded to local AI giants who currently rely on NVIDIA’s H100.
The Ascend 910C is said to be comparable to the H100 in terms of raw performance, positioning it as a viable alternative in China’s burgeoning AI ecosystem. However, the world of AI extends far beyond raw processing power. NVIDIA’s dominance in the field stems not just from its hardware but also from its software, CUDA, optimizations, and a comprehensive suite of tools meticulously crafted for chips like the H100. This is where Huawei faces another formidable hurdle.
Production of the 910C’s predecessor, the Ascend 910B, was severely hampered by US sanctions on critical hardware and tools that chipmakers rely on – including access to crucial HBM chips. Undeterred, Huawei has embraced a strategy of in-house development and manufacturing, aiming for complete independence. It remains to be seen if they can successfully dethrone NVIDIA as the go-to provider for China’s tech giants.
Meanwhile, NVIDIA isn’t standing idle. The company is working on a new, sanction-compliant B20 chip, built on its Blackwell architecture, specifically for the Chinese market. However, the US government has voiced concerns about chipmakers like NVIDIA and Intel creating bespoke AI chips for China. This could lead to adjustments in existing guidelines and restrictions in the coming year, potentially altering the landscape of this critical market. The future of AI chip dominance in China hangs precariously in the balance, with Huawei and NVIDIA locked in a fierce battle for supremacy.
