Huawei testing new AI chip to compete with Nvidia's lead in semiconductors: Report

Huawei Technologies is preparing to test its latest and most powerful artificial intelligence processor in an effort to replace some of the high-end products made by US chipmaker Nvidia, The Wall Street Journal reported on Sunday.

According to the report, citing people familiar with the matter, Huawei has approached several Chinese technology companies to test the technical capabilities of its new chip, known as the Ascend 910D. The company hopes that the new iteration of its Ascend AI processors will outperform Nvidia’s H100 model. Huawei is expected to receive the first batch of samples of the Ascend 910D as early as late May, The Wall Street Journal added.

Reuters had earlier reported on Monday that Huawei plans to begin mass shipments of its advanced 910C AI chip to Chinese customers as early as next month.

As a result of this, Nvidia's shares are down 1.4% premarket. Nvidia declined to comment while Huawei did not immediately respond to a Reuters request for comment.

Huawei and other Chinese technology firms have long faced challenges in developing top-tier chips capable of matching Nvidia’s offerings, which are widely used for training AI models, feeding data to algorithms to help them learn and improve decision-making.

In a bid to curb China’s technological progress, particularly in sectors with potential military applications, the United States has restricted the country’s access to Nvidia’s most advanced AI products, including the flagship B200 chip. U.S. authorities had already banned sales of Nvidia’s H100 chip in China back in 2022, even before the model was officially launched.