Huawei is positioning itself as a significant contender in China’s AI chip sector, directly challenging Nvidia with the forthcoming launch of its Ascend 910C AI chipset. Amidst ongoing U.S. trade restrictions that have already constrained Nvidia’s influence in the region, Huawei’s new chip could dramatically alter the market landscape.

The Ascend 910C, developed by Huawei, is set to make its debut in October, signaling the company’s readiness to compete head-to-head with the American chip giant. This new chipset is a more advanced version of Huawei’s earlier Ascend 910B, and early testing has shown that it can match or even surpass Nvidia’s H100 performance across various applications.

U.S. trade restrictions have hindered Nvidia’s ability to sell its top-tier AI processors in China, forcing the company to introduce lower-end alternatives that have failed to capture significant market interest. In contrast, Huawei’s Ascend 910C aims to offer Chinese companies a more efficient and reliable domestic option, potentially reducing dependence on imported technologies.

The market has responded enthusiastically to Huawei’s upcoming release. Major Chinese companies like ByteDance, Baidu, and China Mobile have already placed pre-orders for over 70,000 units of the Ascend 910C, amounting to an estimated $2 billion in sales before the official launch. This strong demand underscores the potential impact of Huawei’s new chip on China’s AI industry.