Chinese tech giant Huawei has announced plans to launch a new artificial intelligence (AI) to compete with offers from foreign semiconductor manufacturers.
According to the Wall Street Journal (WSJ) reportHuawei’s new chip is expected to be a direct competitor to Nvidia’s (NASDAQ: NVDA) H100 Sources say the Chinese-made chip outperforms the H100. Dubbed the Ascend 910C, China sees the chip as a bold response to the series of sanctions imposed by the US authorities on advanced semiconductors.
Huawei’s new chip is already creating buzz in the local ecosystem, and a group of Chinese companies, including Baidu (NASDAQ: BIDU) and Bytedance, are participating in early testing. The exact specifications of the Ascend 910C are unknown, but sources say the chip will be 20% more powerful than Nvidia’s H100.
The report notes that Huawei has a very long waiting list and is expected to ship 70,000 chips to customers when it launches commercially in October. If the company ships the pre-ordered chips at launch, the WSJ claims that Nvidia could rake in as much as $2 billion in revenue.
However, critics have questioned the company’s ability to meet demands from mainland Chinese tech companies amid a shortage of advanced chips in the country. According to the report, Bytedance’s interest is expected to be at least six figures, while Baidu and China Mobile will each need at least 70,000 chips to meet their generative AI goals.
Recognizing the difficulty of fulfilling orders, Huawei has since invested funds in building semiconductor factories in China while seeking high-profile partnerships to complement its internal efforts.
Despite growing demand, Huawei still has to compete with Nvidia The H20 chips, which are specifically designed for the Chinese market, are expected to be outperformed by other chips, however. Analysts expect the Ascend 910C to outperform the offering. Intel (NASDAQ:INTC) also wants to deploy semiconductors that comply with existing U.S. trade sanctions.
Nvidia’s market share in China, however, is seen as a major hurdle for Huawei in its quest to conquer the ecosystem. Huawei executives say the Ascend series of chips is a turning point for the company’s future, describing it as a “life or death” situation in its bid to compete in the global market.
Tensions with the United States reach their peak
China and the United States are locked in a cold war, with both countries jostling to gain an upper hand in emerging technologies. A key part of the tensions revolves around semiconductors, with the United States seeking to choke off the Asian superpower’s access to high-end chips on national security grounds.
Despite a trade embargo on U.S. chipmakers, China has begun looking inward to meet its semiconductor needs, building new manufacturing plants across the country and funding new research. The investments have begun to pay off, but China is still struggling to free itself from its dependence on the United States.
For artificial intelligence (AI) to operate legally and thrive in the face of growing challenges, it must integrate an enterprise blockchain system that ensures the quality and ownership of the data captured, allowing it to store data securely while ensuring its immutability. Check out CoinGeek’s coverage on this emerging technology to learn more Why Enterprise Blockchain Will Be the Backbone of AI.
Watch: Transformative AI Applications Are Coming
width=”560″ height=”315″ frameborder=”0″ allowfullscreen=”allowfullscreen”>
New to blockchain? Check out CoinGeek Blockchain for Beginners section, the ultimate resource guide to learn about blockchain technology.