Huawei is reportedly set to release new AI chip to challenge Nvidia amid U.S. sanctions.

• The Wall Street Journal reported that Huawei is planning to launch a new AI chip to compete with Nvidia's H100, despite U.S. sanctions aimed at limiting its technological progress.
• Potential clients have already begun testing the chip, Ascend 910C.
• Early discussions about purchasing it have involved ByteDance, Baidu, and China Mobile, according to a report.

Huawei is set to challenge U.S. sanctions with a new artificial intelligence chip, according to a Wall Street Journal report.

According to sources, Huawei's upcoming processor, Ascend 910C, is expected to be as powerful as Nvidia's H100, and the company aims to begin shipments as early as October.

In 2022, Nvidia faced restrictions from U.S. regulators on selling AI chips, including the H100, in China due to national security concerns.

Early discussions are underway with TikTok parent ByteDance, Baidu, and China Mobile to purchase the Ascend 910C chip, which is already being tested by potential customers including Chinese internet firms and telecommunications providers, a report stated.

Huawei is currently experiencing production delays in its chips, according to the Wall Street Journal. Additionally, the company may face additional U.S. restrictions that could hinder its ability to acquire necessary machine components and memory chips for AI.

Huawei's ability to resist American efforts to limit its access to advanced technology is demonstrated by the latest sign.

Despite U.S. sanctions, an analysis of Huawei's Mate 60 Pro smartphone revealed a chip made by China's top chipmaker SMIC that appeared to support 5G.

In China, one of its largest markets, Apple faces competition from a revival in Huawei's consumer business, encompassing smartphones and laptops.

In the second quarter, Apple lost its position in the top five smartphone vendors' list in China due to increased competition from domestic brands like Huawei, as per a Canalys report.

U.S. sanctions have targeted Huawei to safeguard American networks and supply chains.

In 2018, the U.S. prohibited its government agencies from purchasing Huawei hardware or utilizing Huawei services.

In 2019, Huawei was put on a U.S. trade blacklist, prohibiting American companies from selling technology, including 5G chips, to the Chinese tech giant. In 2020, the U.S. tightened its chip restrictions on Huawei, mandating foreign manufacturers using American chipmaking equipment to obtain a license to sell semiconductors to the Chinese tech giant.

In May, the U.S. cancelled some licenses for Intel and Qualcomm to sell chips to Huawei, citing national security and foreign policy concerns.

The Chinese government is increasing its efforts to strengthen its domestic chip industry and has allocated 344 billion Chinese yuan ($47.5 billion) to a third chip fund to support its technology sector.

Read the full WSJ report here.