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Huawei, a renowned tech company, is getting ready to give solid competition to Nvidia, a known U.S. chip giant. It produces high-end tech products for the users to give a top-notch and smooth experience. So, Huawei Technologies is developing a new AI chip, or you can say a powerful AI processor to rival Nvidia.
Summary:
1. The Ascend processor is expected to replace Nvidia’s high-end products and is expected to receive its first batch of updates in May.
2. Nvidia shares have fallen by over 4% in recent trading, and Nvidia shares have lost a fifth of their worth since the beginning of the year.
3. Washington has banned China from accessing Nvidia’s most powerful AI products, including its flagship B200 chip, to hinder its technical growth, particularly in military services.
Huawei a renowned tech company is getting ready to give a solid competition to Nvidia known to be U.S. chip giant. It produces high-end tech products for the users to give top notch and smooth experience. So, Huawei technologies are developing a new AI chip, or you can say a powerful AI processor to rival Nvidia.
Now let’s read this tech news in detail to explore this new Ascend AI chip and how they are preparing to compete with one of the chip giants, which is known for producing strong processors, software for a quick and efficient user experience.
According to Huawei, this new Ascend AI is likely to replace Nvidia high end products. And it has reached out to some Chinese tech companies for testing the technical aspects of its new chips.
Following the tech headlines sources say, Huawei Technologies believes that the latest renewal of its Ascend AI chips will be stronger and more efficient than Nvidia H100, and is set to receive its first batch of updates to the Ascend processor as which may be late May.
According to Reuters, Huawei has decided to head for the mass shipment of its advanced and strong ascend AI chips to Chinese customers as early as next month.
Huawei and its Chinese fellow members have been struggling for years to compete with Nvidia in developing exclusive processors that can provide a solid competition to the products of US companies for training machines; a procedure in where information is provided to the algorithm to assist them in learning and making precise decisions based on existing data and patterns fed into the system.
Washington has banned China from accessing Nvidia’s most powerful AI products, including its flagship B200 chip, to hinder its technical growth, notably in military services.
It is being said, The H100 chip, for example, was banned from sale in China in 2022 by US authorities before it was even released.
Nvidia declined to comment, while Huawei did not immediately respond to Reuters’ request for comment.
Nvidia shares, which declined to comment on the report, fell by over 4% in recent trading. They’ve lost a fifth of their worth since the beginning of the year and have yet to fully recover from a decline on Jan. 27 that wiped almost $600 billion off the company’s market capitalization after a Chinese firm, DeepSeek, claimed its models rivaled OpenAI’s Chat GPT at a quarter of the cost.
Nvidia stated earlier this month that it expects to incur a $5.5 billion first-quarter penalty because of the United States’ restrictions on exports of its H20 chips to China.
Huawei’s latest chip building is a bold step forward in the global chip race. The Ascend 910D chip is now entering testing phases, and shipments are expected to begin as early as next month. It is setting itself to challenge top-tier leaders like Nvidia. Also, this comes at a time when U.S. export bans have limited access to top-tier processors, pushing Chinese tech firms to fast-track local innovation.
While Nvidia has taken a hit in market value and remains silent on the matter, all eyes are on how Huawei’s new chip performs in real-world testing. If it lives up to the company’s claims, this could reshape the future for tech firms seeking high-performance processors in China and beyond.