Nvidia Acknowledges Huawei as Major AI Chip Competitor

In a significant revelation, Nvidia has recognized Huawei as a competitor across various categories, notably in the business of artificial intelligence (AI) chips.
Generative AI chips NVIDIAThe Santa Clara-based tech giant highlighted Huawei, a prominent player in China’s technology business, as a contender in the provision of chips tailored for AI applications, encompassing graphics processing units (GPUs), central processing units (CPUs), and networking chips.

Nvidia, in a filing submitted to the US Securities and Exchange Commission (SEC), has pointed out Huawei’s foray into cloud services, wherein the Chinese company develops proprietary hardware and software solutions to enhance AI computing capabilities.

While Nvidia refrained from offering additional comments, the acknowledgment of Huawei’s competitive stance underscores the evolving dynamics within the AI chip market.

Huawei, known for its Ascend series of chips, has emerged as a direct rival to Nvidia’s portfolio of AI chips. Of particular note is Huawei’s flagship product, the 910B chip, positioned as a principal adversary to Nvidia’s A100 chip, which debuted approximately three years ago.

Industry analysts have pegged China’s AI chip market at a staggering $7 billion, signaling the immense potential and fierce competition prevalent in this burgeoning sector. Notably, last year, Reuters reported on Chinese tech behemoth Baidu placing a significant chip order with Huawei, a move perceived as strategic amid looming regulatory restrictions imposed by the U.S. government on the export of advanced AI chips to China.

In addition to Huawei, Nvidia’s filing also identified other prominent rivals, including Intel, Advanced Micro Devices (AMD), Broadcom, and Qualcomm.

Furthermore, the chip manufacturer highlighted the presence of major players in the cloud computing arena, such as Amazon.com and Microsoft, reflecting the interconnected nature of the AI ecosystem and the diverse array of competitors vying for market share and technological supremacy.