Huawei Prepares to Launch AI Chip Amidst US Sanctions

Huawei is on the verge of launching a new AI chip in a bid to challenge Nvidia in China amidst US sanctions, according to WSJ, citing sources.

In recent weeks, Chinese telecommunications and internet companies have been testing the Ascend 910C processor, the newspaper reports. Huawei has informed potential clients that it is comparable to Nvidia’s H100.

Last year, US regulators banned Nvidia from selling its flagship chips like the H100 to Chinese clients, citing national security concerns. In July, media reported on the company’s work on a version of the chips for the Chinese market that would comply with existing US export control regulations.

Deliveries of the Ascend 910C are scheduled for October. The chip has attracted interest from search giant Baidu, state-owned telecom operator China Mobile, and TikTok’s parent company ByteDance. According to media reports, orders are expected to exceed 70,000 processors with a total value of approximately $2 billion.

Earlier, media reported a delay in the delivery of Nvidia’s new AI chips, the Blackwell B200, by at least three months. They are not expected until the first quarter of 2025.

In September 2023, it was revealed that Chinese scientists were eager to begin producing AI processors to circumvent US sanctions.