Huawei Anticipates High Global Demand for AI Chips If NVIDIA Faces Continued US Export Policy Pressures, According to CEO Jensen Huang

Recent developments in the competitive landscape have raised alarms for NVIDIA as the company grapples with increased pressure from Huawei. NVIDIA’s CEO, Jensen Huang, is particularly concerned that stringent U. S.export restrictions could jeopardize the firm’s standing in the market.

NVIDIA’s CEO Appeals to U. S.Lawmakers to Mitigate Export Pressure Amidst Rising Huawei Competition

The ongoing geopolitical tensions between the U. S.and China have intensified the competition in what is being termed the “AI war”.This rivalry encompasses not only the race for advanced AI models but also the quest for superior hardware. Under the current stringent U. S.export regulations, NVIDIA finds itself at a disadvantage, while Huawei has capitalized on this situation by aggressively expanding its AI product lineup. Huang highlighted these developments during a private discussion with members of the U. S.House of Representatives Foreign Affairs Committee.

If DeepSeek R1 had been trained on (Huawei chips) or a future open-source Chinese model had been trained to be highly optimized to Huawei chips, that would risk creating a global market demand for Huawei chips.

– NVIDIA via Reuters

Indeed, U. S.policies have enabled Huawei and China to rapidly enhance their AI capabilities. A noteworthy instance is Huawei’s Ascend AI chips, which are now competing directly with NVIDIA’s leading products, such as the Hopper H100 and H20 AI accelerators. The company has started gaining traction with major technology players like ByteDance and Tencent, signaling a robust adoption trend. Furthermore, Huawei is preparing to launch new generations of these chips, which are expected to deliver even higher performance levels. This escalating competition poses a significant challenge for NVIDIA, as it may increasingly find itself limited in its strategic options.

Huawei Preps Ascend 910C To Tackle NVIDIA's H100 In China's Domestic AI Market 1

In a significant move, Huawei recently launched its state-of-the-art AI cluster, the CloudMatrix 384, which incorporates the Ascend 910B chip. This system exhibits performance levels rivaling NVIDIA’s “Blackwell”GB200 NVL72 systems, despite being priced three times higher. The ability of Huawei’s technology to narrow the generational gap with NVIDIA amplifies the concerns expressed by Huang regarding the competitive landscape.

As NVIDIA navigates this challenging environment, the possibility of “legal relaxation”regarding export regulations remains unclear. Another pivotal challenge on the horizon is the “AI Diffusion”rule, which could further restrict NVIDIA’s international market presence. Historically, the company faced setbacks during the Trump administration when its H20 AI chip was banned, highlighting the tough road ahead for the firm as it looks to maintain its competitive edge.

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