Huawei Challenges Nvidia’s H100 with New AI Chip
Huawei is preparing to test its latest AI processor, the Ascend 910D, which is designed to rival Nvidia’s H100 chip. The company has approached several Chinese tech firms to evaluate the chip’s capabilities, with sample batches expected by late May 2025. This initiative comes as U.S. export controls limit China’s access to advanced AI chips, creating a demand for domestically produced alternatives.
Market Implications and Industry Response
The development of the Ascend 910D has had immediate market effects, notably causing Nvidia’s stock to drop nearly 4%. Huawei’s move is part of a broader strategy to reduce reliance on foreign technology and bolster China’s semiconductor industry. The company is also planning mass shipments of its earlier Ascend 910C chip, which has demonstrated approximately 60% of the inference performance of Nvidia’s H100, according to DeepSeek researchers.
Challenges and Future Outlook
While Huawei’s advancements are significant, analysts caution that matching Nvidia’s performance will take time. The Ascend 910D’s success will depend on overcoming technical challenges and achieving production scalability. Nonetheless, Huawei’s efforts represent a critical step in China’s pursuit of self-sufficiency in AI hardware, especially in light of ongoing geopolitical tensions and trade restrictions.
As Huawei continues to develop and test the Ascend 910D, the global AI chip landscape may experience shifts, particularly in markets affected by U.S. export policies. The outcome of Huawei’s endeavors could significantly influence the balance of power in the AI technology sector.
