NVIDIA CEO Acknowledges Huawei As A Potential Competitor In AI Chipmaking

In a recent development, NVIDIA Corp. NVDA CEO Jensen Huang has acknowledged the stiff competition in the AI chip market, identifying Huawei Technologies Co. as a significant contender.

What Happened: As per a Bloomberg report, Huang, while in Singapore for discussions with Prime Minister Lee Hsien Loong, accepted the growing competition in the AI segment. He pointed out Huawei, Intel Corp., and an array of semiconductor startups as major rivals.

Huawei, headquartered in Shenzhen, has emerged as China’s top chip technology proponent, astonishing the industry this year with a sophisticated domestically-produced smartphone processor.

“We have a lot of competitors, in China and outside China,” Huang informed the press.

He further stated that NVIDIA, whose AI chips have become a coveted asset in the AI surge, faces competition everywhere it functions.

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Huang also addressed the U.S.-imposed trade restrictions on the sale of their AI chips to China. He reiterated that NVIDIA would continue to abide by trade regulations and carefully navigate the U.S.-China trade conflicts.

The NVIDIA CEO divulged the company’s plans to launch a new product lineup for the Chinese market, in line with the latest Washington regulations. He also affirmed NVIDIA’s continued service to Chinese clients in Singapore.

Why It Matters: Huawei’s rise as a major player in the AI chip industry has been a strategic move by the Chinese government to create an independent chip environment. The Shenzhen-based company has not only become a principal chip designer but also a main client for chip manufacturers, offering technical expertise and financial backing to smaller firms in the chip supply chain.

In another industry shift, Baidu Inc. BIDU ditched its long-time supplier Nvidia to order AI chips from Huawei. This move underscores the changing global tech alliances in the face of increasing U.S. restrictions on tech exports to China.

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Photo courtesy: Nvidia Corp on Flickr