Tech

A New Competitor in the AI Chip Market

2 months ago
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TLDR

  • Huawei is preparing to release a new AI chip called Ascend 910C
  • The Ascend 910C is said to rival Nvidia’s H100 chip in performance
  • Major Chinese tech companies are reportedly interested in ordering the chip
  • Initial orders are valued at around $2 billion for 70,000 chips
  • US sanctions have impacted Huawei’s access to advanced chipmaking technologies

Huawei Technologies, the Chinese electronics giant, is set to launch a new artificial intelligence chip that could challenge Nvidia’s dominance in the AI processor market.

The upcoming Ascend 910C is reportedly in testing and has already attracted interest from major Chinese tech companies.

According to reports from the Wall Street Journal, Huawei has been testing the Ascend 910C with key players in China’s tech sector, including ByteDance, Baidu, and China Mobile.

These companies are said to be in talks to acquire the new chip, with initial orders potentially reaching 70,000 units. The total value of these orders is estimated at around $2 billion, suggesting a price of approximately $28,000 per chip.

The Ascend 910C represents a significant upgrade from its predecessor, the 910B. While the 910B was comparable to Nvidia’s older A100 chip, the new 910C is reportedly designed to compete with Nvidia’s more powerful H100 processor. Some analysts even suggest it might outperform Nvidia’s upcoming B20 “Blackwell” AI chip.

Huawei’s development of the Ascend 910C comes in the wake of strict U.S. sanctions that have limited the company’s access to advanced chipmaking technologies.

These restrictions have not only affected Huawei but have also impacted Nvidia’s ability to sell its top-tier chips to Chinese customers. As a result, there’s been a surge in domestic chip development within China.

In response to these challenges, Huawei is taking steps to become more self-reliant. The company is building facilities to develop and produce semiconductor equipment on Chinese soil.

It’s also collaborating with Chinese semiconductor firms to produce high-bandwidth memory chips domestically.

While Huawei has not yet released detailed specifications for the Ascend 910C, the company reported that its predecessor was 80% more efficient than Nvidia’s A100 in AI training tasks and 20% more powerful in specific inference tasks. If the 910C delivers significantly improved performance, it could mark a major breakthrough for Huawei in the AI chip industry.

However, some analysts have expressed doubts about Huawei’s ability to meet expectations, given the ongoing impact of U.S. sanctions. The company still faces challenges in securing necessary components and machinery to establish a consistent supply chain.

Despite these obstacles, industry experts predict a bright future for Huawei’s AI chip business. Some estimates suggest the company could sell between 1.3 million to 1.4 million 910C chips by 2025 if it can maintain a steady supply.

The development of the Ascend 910C is part of a larger trend in China’s tech industry, as domestic companies seek to reduce reliance on foreign technology in the face of international trade tensions.

This shift is creating new competition for established players like Nvidia, who are also adapting their strategies to navigate the complex global market for AI chips.

Huawei plans to start shipping the Ascend 910C in October, marking a milestone in the company’s efforts to establish itself as a major player in the AI chip market.

Source: https://blockonomi.com/huawei-unveils-ascend-910c-a-new-competitor-in-the-ai-chip-market/