Huawei Challenges Nvidia (NVDA) with New AI Computing Systems

Chinese telecommunications giant Huawei announced new computing systems for artificial intelligence powered by Ascend chips, challenging U.S. rival Nvidia (NVDA). The “Atlas 950 SuperCluster” is set to launch next year, utilizing large groups of less efficient chips to achieve computing capabilities amid U.S. sanctions. Huawei’s new supernodes aim to be the world’s most powerful in computing.

Huawei’s announcement coincides with China promoting homegrown alternatives to Nvidia. Trade talks in Spain included talks on TikTok’s U.S. operations. China extended a probe into Nvidia over monopolistic practices. Nvidia shares fell after reports of China halting tests and orders of the Nvidia RTX Pro 6000D chip. Nvidia CEO expressed disappointment and acknowledged Huawei as a formidable competitor.