Huawei is currently testing its new AI chip, the Ascend 910C, with potential clients in China. This chip is designed to serve as a robust alternative to Nvidia's top-tier GPUs, particularly following US restrictions that have limited Nvidia's sales in China. Samples of the Ascend 910C have been provided to major server companies in China for testing and hardware setup.
Upgraded Technology
The Ascend 910C is an enhanced version of Huawei's Ascend 910B chip, which has already been utilized in various sectors within China as a substitute for Nvidia’s A100 chip, particularly in AI training applications.
Consequences of US Sanctions on Nvidia
Since August 2022, US sanctions have barred Nvidia from selling its A100 and H100 GPUs to China. In response, Nvidia created modified versions, including the A800 and H800; however, these too faced additional export restrictions in 2023. Despite these challenges, Nvidia continues to be a significant player in China's AI market, introducing new products such as the H20, L20, and L2 GPUs. The H20 chip is anticipated to generate substantial revenue in China, with expected sales reaching US$12 billion in 2024, despite previous low demand.
Huawei’s Expanding Role in China
The US sanctions imposed on Nvidia have opened doors for Huawei to enhance its AI infrastructure and computing capabilities in China. Eric Xu Zhijun, Huawei’s rotating chairman, highlighted that the company has established two computing divisions over the past five years to bolster the domestic AI sector. This strategic move has positioned Huawei as a formidable competitor in the AI chip industry.
While Huawei's AI chips, including the Ascend 910C, show significant promise, the company does encounter challenges. Huawei generally packages its AI chips with additional services, such as network and storage solutions, which might dissuade some potential clients. Moreover, many of Huawei's AI chips currently in use are still the older 910B models.
As the competition between Huawei and Nvidia escalates, Huawei's ongoing advancements in AI technology may enable it to become a pivotal player in China's AI chip market, especially as it strives for greater self-sufficiency in semiconductor manufacturing.
