Huawei Ascend 910C AI Chip Expected to Rival NVIDIA H100; Potential Market Sell-Off Ahead

Huawei Ascend 910C AI Chip Expected to Rival NVIDIA H100; Potential Market Sell-Off Ahead

In a significant development in the artificial intelligence sector, China is poised to present a pivotal breakthrough in AI hardware with the upcoming launch of Huawei’s Ascend 910C AI chip. This innovation has the potential to alter the competitive landscape, particularly vis-à-vis NVIDIA’s offerings.

Huawei’s Upcoming Ascend 910C: A Strong Competitor in AI Hardware

The competition in the AI field is intensifying, especially following recent advancements such as DeepSeek’s revolutionary R1 model. Despite facing stringent regulations and sanctions imposed by the United States, Chinese technology companies have remarkably progressed, developing in-house AI models that can compete with those from industry leaders like OpenAI. A notable focus of this advancement has been on enhancing hardware capabilities, with the Ascend 910C from Huawei set to play a critical role in this strategic shift.

Recent analyses highlight that DeepSeek has effectively utilized Huawei’s chips for computational tasks. According to reports from Chinese media, the Ascend 910C is demonstrating performance levels close to NVIDIA’s H100 chip, achieving an impressive 60% efficiency compared to the latter’s Hopper AI accelerator. This development positions companies like DeepSeek to gain substantial advantages by adopting Huawei’s computational technologies, an aspect worth exploring further.

NVIDIA H100 AI GPU

It’s noteworthy that the Ascend 910C is an entirely domestically developed chip, utilizing the 7nm fabrication process by SMIC and comprising an impressive 53 billion transistors. Huawei’s commitment to supporting DeepSeek’s AI models from inception, combined with compatibility with NVIDIA’s CUDA framework, significantly eases the transition for developers. However, the successful establishment of a robust software ecosystem is crucial for Huawei to effectively challenge NVIDIA’s long-held dominance in this sector.

Adding to the intrigue is speculation that Huawei may reveal the Ascend 910C at the same time as NVIDIA’s GTC 2025 keynote, which is anticipated to showcase next-generation architectures. This synchronized unveiling could be China’s strategic counter to NVIDIA’s escalating computational capabilities, and if executed well, may lead to adverse market reactions for NVIDIA.

NVIDIA AI Chip Renting Services Comparison

Recent observations suggest that NVIDIA is experiencing significant pressure as its revenue streams face increasing scrutiny. With the U. S.administration working to close trade loopholes impacting its sales—particularly in regions like Singapore, which accounts for a substantial portion of NVIDIA’s revenue—further regulation concerning AI chip sales to nations deemed adversarial is likely to impact its financial outlook. This situation could incite notable volatility within the stock market, reminiscent of the trends seen in recent months.

In summary, China’s rapid advancements illustrate that U. S.regulatory measures have not stifled domestic innovation; rather, they have catalyzed it. This is reflected in the formidable developments from players like Huawei and DeepSeek, underscoring a notable shift in the global AI landscape.

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