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Home » Nvidia’s AI chips face strong Chinese competitors
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Nvidia’s AI chips face strong Chinese competitors

i2wtcBy i2wtcJune 7, 2024No Comments3 Mins Read
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Nvidia's AI chips have a strong Chinese rival - Huawei's latest Ascend 910B

Nvidia’s AI chips have a strong Chinese rival – Huawei’s latest Ascend 910B

NVIDIA Corporation (NASDAQ:NVDA) Huawei Technologies Its latest AI chip, the Ascend 910B, matches or beats Nvidia’s A100 in some tests, Huawei executives claim.

The Ascend 910B achieves 80% of the efficiency of the A100 when training large language models and performs 20% better in other tests.

The claims come amid strict US export controls that bar Nvidia from shipping advanced GPUs to China, SCMP reported.

Huawei introduced the Ascend series in 2019 and has built a robust proprietary software and hardware ecosystem.

Despite the constraints, Huawei’s AI strategy is gaining momentum, with its Ascend chips being adopted by major Chinese technology companies. Tencent Holdings (OTC:TCEHY), Baidu Inc. (NASDAQ:BIDU), iFlyTek, etc. As Huawei continues to expand its influence in China’s domestic market, its AI chips are vital to China’s goal of achieving technological self-sufficiency.

Analysts say Chinese manufacturers have challenges producing powerful AI computing chips using older systems.

AI chips like Nvidia’s A100 are much more extensive and complex than your typical smartphone chip.

However, Huawei’s Ascend 910B and Kunpeng chips have emerged as viable alternatives for AI applications in the country.

Analysts say that while Huawei’s top-end chips are still technically inferior to Nvidia’s latest GPUs, the company’s AI strategy and adaptation to the domestic market gives it greater competition in China.

Reportedly, the Chinese chip giant Semiconductor Manufacturing Internationalis ramping up chip production using domestically produced tools.

Previous reports have suggested Tencent is developing AI chips in order to grab some of Nvidia’s market share, which accounts for up to 90% of China’s $7 billion AI chip market.

meanwhile, Intel (NASDAQ:INTC) and Nvidia continue to focus on the Chinese market with custom-made AI chips.

Nvidia recently surpassed $3 trillion in market capitalization. Apple (NASDAQ:AAPL) is now the second-highest company by market capitalization. Nvidia’s market cap increased by nearly $150 billion on Wednesday.

Price Trends: NVDA shares were trading at $1,196.05 as of last check on Friday, down 1.15%.

Disclaimer: This content was produced in part with the help of AI tools and was reviewed and published by Benzinga editors.

Image courtesy of Shutterstock

Up your stock market game with Benzinga Pro, the #1 “News and Everything Else” trading tool in the “Active Investor’s Secret Weapon” – Start your 14-day trial now by clicking here.

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The article Nvidia’s AI chips get a strong Chinese competitor – Huawei’s latest Ascend 910B originally appeared on Benzinga.com.

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.



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