China's Huawei Technologies is on the verge of launching a new AI chip to compete with Nvidia in China, despite US sanctions, according to a Tuesday report by the Wall Street Journal, which cited sources.
The latest Huawei processor, the Ascend 910C, has been undergoing tests by Chinese internet and telecom firms in recent weeks. Huawei has informed prospective clients that this chip is on par with Nvidia's H100. Huawei has yet to respond to a request for comment from Reuters.
Last year, US regulators implemented rules that prevented Nvidia from selling its advanced chips, including the H100, to Chinese customers due to national security concerns. In response, Nvidia introduced three chips specifically for the Chinese market, among which the H20 chips were closely monitored. However, the computing power of the H20 was substantially reduced compared to the H100 in compliance with US sanctions.
The Journal report indicates that Huawei plans to begin shipping its newest chip as early as October. Companies like ByteDance, Baidu, and China Mobile are seeking to acquire the 910C chips. Preliminary discussions between Huawei and potential customers suggest that orders could exceed 70,000 chips, with an estimated total value of around $2 billion.
