• NVIDIA CEO Jensen Huang acknowledges Huawei as a 'formidable' competitor making 'enormous progress in AI.'
  • Huawei prepares to test its most advanced AI processor, the Ascend 910D, challenging NVIDIA's dominance.
  • US export restrictions appear to be accelerating China's push for domestic AI chip alternatives.

Huawei's AI Ambitions Take Shape

Huawei is gearing up to test its next-generation Ascend 910D AI processor by late May 2025, according to people familiar with the matter. The chip, still in development, represents China's most ambitious attempt yet to create a viable alternative to NVIDIA's high-end offerings. This comes as Huawei has already begun ramping up shipments of its current 910C model to domestic customers.

"What we're seeing is a company that's learned to innovate under pressure," said one Beijing-based semiconductor analyst who asked not to be named due to the sensitivity of ongoing US-China trade talks. "The 910D won't match NVIDIA's latest specs across the board, but in certain applications it could be competitive."

Technical Breakthroughs Amid Trade Tensions

The development comes against the backdrop of strict US export controls that have barred NVIDIA from selling its most powerful chips like the H100 to Chinese firms. Huawei appears to be responding with several technical innovations, including experimental "ternary logic" processors and domestically-produced EUV equipment that could reduce reliance on foreign technology.

Market watchers note that Huawei's progress validates Huang's recent comments about the company's growing capabilities. "When the CEO of the world's most valuable chip company calls you formidable, that carries weight," the analyst added. Early benchmarks suggest the 910D may outperform NVIDIA's H100 in specific AI workloads, though comprehensive comparisons aren't yet available.

Industry Implications

Chinese cloud providers and AI startups have reportedly begun evaluating Huawei's offerings as potential replacements for NVIDIA hardware. One Shenzhen-based AI firm confirmed they're testing the 910C but declined to share performance details. NVIDIA representatives didn't immediately respond to requests for comment on Huawei's advancements.

With testing of the 910D expected to begin within months, the competitive landscape in AI hardware appears poised for significant change - especially if US export policies remain unchanged. As one industry insider put it: "The genie's out of the bottle now. Even if restrictions ease, Chinese firms now have real incentive to develop homegrown solutions."