Huawei Technologies is gearing up to launch a new artificial intelligence (AI) chip, Ascend 910C, positioning itself as a competitor to Nvidia in China despite U.S. sanctions. According to a report by the Wall Street Journal, Huawei’s latest processor is being tested by major Chinese internet and telecom companies, with the tech giant claiming the chip is comparable to Nvidia’s H100.

The development comes after U.S. regulators imposed restrictions last year, preventing Nvidia from selling its advanced chips, including the H100, to Chinese customers due to national security concerns. In response, Nvidia introduced modified versions of its chips, including the H20, specifically for the Chinese market. However, the computing power of these chips has been significantly reduced to comply with U.S. sanctions.

Huawei’s new chip could be available as soon as October, according to the report. Major Chinese companies such as ByteDance, Baidu, and China Mobile are reportedly interested in acquiring the 910C chips. Early discussions suggest that orders for the chip could exceed 70,000 units, with an estimated total value of around $2 billion.

Huawei did not immediately respond to requests for comment on these developments. The company’s move to introduce a competitive AI chip highlights its ongoing efforts to overcome challenges posed by U.S. sanctions and secure a stronger position in the AI market.

(Adapted from ThePrint.com)