China's Huawei Technologies is preparing to launch a new artificial intelligence (AI) chip, the Ascend 910C, which aims to challenge Nvidia's dominance in the Chinese market, the Wall Street Journal reported on Tuesday.
The Ascend 910C, expected to debut in October, is reportedly being tested by major Chinese internet and telecom companies, including ByteDance, Baidu, and China Mobile.
Huawei has informed potential clients that the chip's performance is comparable to Nvidia's H100, which is currently restricted from being sold in China due to US sanctions.
The US government imposed these sanctions last year, barring NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) from exporting its most advanced chips, such as the H100, to Chinese customers, citing national security concerns. In response, Nvidia introduced modified versions of its chips for the Chinese market, including the H20, though these have reduced capabilities compared to the H100.
The Wall Street Journal's sources suggest that initial orders for Huawei's 910C chip could exceed 70,000 units, with a total value of around $2 billion, positioning Huawei as a significant competitor in the AI chip market within China.