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China’s Huawei Technologies is poised to make a significant move in the artificial intelligence (AI) market with the launch of its new Ascend 910C chip.?
This development comes as the tech giant seeks to challenge Nvidia’s dominance in China’s AI sector amid U.S. sanctions.
According to a report by The Wall Street Journal, major Chinese internet and telecom companies, including Baidu, ByteDance, and China Mobile, are currently testing the Ascend 910C ahead of its expected October debut.
???? Huawei is close to introducing Ascend 910C, a new chip for AI use, overcoming US sanctions to challenge Nvidia in the China market.
???? internet companies and telecom operators have reportedly been testing Ascend 910C in recent weeks.
Huawei has told potential clients that… pic.twitter.com/mN2ySVizRj
— Byron Wan (@Byron_Wan) August 13, 2024
Huawei has reportedly informed potential clients that the new processor rivals Nvidia’s H100, a leading AI chip whose sale was banned in China by U.S. regulators in 2022, citing national security concerns.
This move by Huawei demonstrates the company’s resilience in the face of American efforts to limit its access to advanced technology.
However, the Chinese tech giant still faces significant hurdles despite this milestone. The Wall Street Journal reports that Huawei is experiencing production delays with its current chips and faces the prospect of further U.S. restrictions. This could impact its ability to obtain crucial machine components and memory chips for AI development.
Impact of U.S. Sanctions
The U.S. has targeted Huawei with several sanctions since 2018, aiming to secure U.S. networks and supply chains.
These measures have included banning U.S. agencies from obtaining Huawei equipment or services and placing the company on a trade blacklist.
Additionally, chip restrictions have been tightened to prevent foreign manufacturers using American chip-making equipment and from selling semiconductors to Huawei without a license. Despite these restrictions, China’s demand for advanced AI chips remains strong, driving creative workarounds. For instance, Nvidia’s plans to launch a custom AI chip for the Chinese market.
Yet, reports suggest that Nvidia AI chip smuggling into China has become rampant, with illicit trade hubs emerging in cities like Shenzhen and parts of eastern China.
In another case, an electric appliance company in eastern China bypassed U.S. export controls by ordering 300 servers worth $120 million, powered by Nvidia’s H100 chips. The purchase was conducted through a chip broker in Malaysia.
The broker established a shell company to conceal links with the Chinese parent company, highlighting the cat-and-mouse game between U.S. regulators and Chinese companies.
This illicit trade is helping China evade U.S. sanctions and maintain access to restricted AI technology, fueling concerns about their usage in gaining an advantage in tech and in strengthening their military applications.
A recent report revealed how smuggled Nvidia chips and other restricted U.S. tech are being used in research to create nuclear weapons and other military equipment and applications.
