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Huawei Develops AI Chip to Rival Nvidia Amid US-China Tech Tensions

28 April 2025
in Business, News
Reading Time: 3 mins read
107 3
Home Business

Huawei is working on testing a new AI chip called the Ascend 910D, which is aimed at competing with Nvidia’s high-end processors. The company plans to distribute sample chips to local tech firms by late May, although the chip is still in early development and requires extensive testing. 

Huawei is optimistic that the Ascend 910D will outperform Nvidia’s current AI training chip. Additionally, the company is set to ship over 800,000 units of its earlier Ascend 910B and 910C models to various customers, including state-owned telecoms and private developers like ByteDance, the owner of TikTok.

This development comes amid escalating trade tensions between China and the United States. The US government has imposed strict export controls on advanced semiconductor technology to China, impacting companies like Nvidia. In mid-April, Nvidia announced it was expected to incur a $5.5 billion charge related to inventory restrictions caused by these export controls.

The Trump administration has added Nvidia’s most powerful H20 chip to the list of restricted technologies, limiting its sale to China. Key components essential for AI chip production, such as high-bandwidth memory units, have been blocked from export to China.

Rather than solely enhancing individual chip power, Huawei is also developing more efficient computing systems. For instance, unveiled in April, the CloudMatrix 384 system connects multiple Ascend 910C chips to leverage collective processing power, emphasizing system-level performance improvements.

Despite US efforts to engage China in trade talks, Beijing has stated it is not currently pursuing negotiations and urged the US to avoid creating confusion.

The announcement of import tariffs in early April 2025 caused a downturn in Bitcoin and Ethereum prices due to fears of an economic slowdown. Subsequently, hints at a suspension of these tariffs later in April triggered a significant market rally, illustrating the sensitivity of crypto to political and macroeconomic signals.

 

 If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.

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