Huawei is sampling its latest AI GPU, the Ascend 910C, to major Chinese technology companies, including ByteDance, Alibaba, and Baidu, according to the South China Morning Post. This move comes as local AI firms seek alternatives to NVIDIA's chips, which have become increasingly difficult to acquire due to U.S. trade restrictions.

The Ascend 910C is viewed as an upgrade over its predecessor, the 910B, although specific details about its capabilities remain unclear. Some analysts predict that the 910C could outperform NVIDIA's upcoming Blackwell-based B20 GPU. With the ongoing embargo preventing NVIDIA's most advanced GPUs from entering the Chinese market, Huawei is poised to fill the gap and enhance its presence in the cloud computing space.

Erix Xu Zhijun, one of Huawei's rotating chairmen, noted that the GPU embargo is “unlikely to be lifted anytime soon,” providing the company with a strategic opportunity. The NVIDIA H20, which is still permitted for sale in China, is projected to sell around one million units, potentially generating $12 billion in revenue. In contrast, the 910C is expected to launch in October with sales around 70,000 units, valued at approximately $2 billion. This timing means Huawei's offering will only be available in the fourth quarter.

Local AI companies are eager to adopt the Ascend 910C, although concerns remain about being tied to Huawei's ecosystem, which includes networking and storage solutions. The success of the 910C may hinge on its performance improvements over the 910B and how well it can compete with NVIDIA's established CUDA ecosystem, a challenge that has hindered other competitors like AMD and Intel.

As NVIDIA faces potential further restrictions on its H20 AI accelerators, Huawei's entry into the market could provide a vital alternative for Chinese tech giants seeking reliable AI solutions. The evolving landscape suggests that if Huawei can address supply concerns effectively, it may challenge NVIDIA's dominance in the sector.