China’s Huawei Technologies Co is set to introduce a new artificial intelligence chip to challenge Nvidia in China amid U.S. sanctions, the Wall Street Journal reported Tuesday, citing sources.
Huawei’s latest processor, the Ascend 910C, has been tested by Chinese internet and telecommunications companies in recent weeks, the report said, adding that Huawei has told potential customers that the chip is comparable to Nvidia’s H100.
Huawei did not immediately respond to a Reuters request for comment.
Last year, U.S. regulators put in place rules blocking Nvidia from selling its advanced chips, including the H100, to Chinese customers, citing national security concerns.
Nvidia then introduced three chips specifically designed for China, including the highly-watched H20 chips. However, in line with US sanctions, the computing power of the H20 chips was significantly limited compared to the H100 chips.
According to the Journal’s report, Huawei aims to start shipping its new chip as early as October.
Companies including TikTok parent company ByteDance, Baidu and China Mobile are eyeing the 910C chips.
Early negotiations between Huawei and potential customers indicate that orders are likely to exceed 70,000 chips, with a total value of about $2 billion, the report said.
First published: August 14, 2024 | 12:01 a.m. IST
