Nvidia’s Chinese Rival: Huawei to Test Latest AI Processor, Aims to Outperform H100

China’s Huawei Technologies is preparing to test its latest and most advanced artificial-intelligence processor, the Ascend 910D, aiming to compete with high-end products from US chip leader Nvidia, The Wall Street Journal reported on April 27, 2025.

As per the report, Huawei has approached several Chinese tech companies to assess the technical feasibility of its new chip, the Ascend 910D.

Better Than Nvidia?

The Chinese company aims for its latest Ascend AI processor, the 910D, to surpass the performance of Nvidia’s H100, with the first batch of samples expected by late May, according to the article. Earlier versions include the 910B and 910C. Reports suggest that the chip is in early development and will undergo extensive testing to evaluate its functionality and prepare it for commercial use.

Additionally, Huawei is reportedly planning to sell over 800,000 units of its older Ascend 910B and 910C chips to customers, including state-owned telecom providers and private AI companies such as ByteDance, the parent company of TikTok.

Beijing has reportedly urged Chinese AI developers to boost purchases of domestically produced chips amid escalating trade tensions between China and the United States.

Nvidia’s Export Concerns

Nvidia announced it will incur $5.5 bn in charges due to US government restrictions on exporting its H20 artificial intelligence chip to China, a significant market for one of its top products.

Nvidia’s AI chips have been a primary focus of US export controls, as authorities seek to prevent the sale of advanced chips to China to maintain US dominance in the AI race. In response, Nvidia developed processors designed to comply with US restrictions while maximizing performance within those constraints.

In a filing, Nvidia disclosed that the US government informed the company it would require a license to export its H20 chips to China and several other countries. A US Commerce Department spokesperson announced late Tuesday that new licensing requirements would be imposed for exports of chips, including Nvidia’s H20, AMD’s MI308, and their equivalents.

“The Commerce Department is committed to acting on the President’s directive to safeguard our national and economic security,” said the spokesperson for the department overseeing US export controls.

These latest export restrictions signal that Nvidia’s strong growth trajectory may face challenges due to escalating geopolitical constraints. The US has stated that these high-performance CPUs could power military-grade supercomputers. Nvidia is set to release its first-quarter financial results on May 28, 2025.