Analysts predict that the U.S. curbs could provide an opportunity for Huawei to expand in its $7 billion home market. Despite being seen as inferior to Nvidia's chips, Huawei's Ascend chips are considered the most sophisticated domestic option available in China. The order also signifies technological advances for Huawei, as China invests heavily in its domestic semiconductor industry.
Key takeaways:
- Baidu ordered 1,600 of Huawei Technologies' 910B Ascend AI chips, developed as an alternative to Nvidia's A100 chip, for 200 servers, with the total value of the order being approximately 450 million yuan ($61.83 million).
- This move is seen as significant as it indicates a shift away from U.S. company Nvidia, due to increasing U.S. pressure and restrictions on chip exports to China.
- Although Huawei's Ascend chips are considered inferior to Nvidia's in terms of performance, they are the most sophisticated domestic option available in China, and this order suggests preparation for a future where Chinese companies may no longer be able to purchase from Nvidia.
- Analysts predict that U.S. curbs will create an opportunity for Huawei to expand in its $7 billion home market, and this order adds to signs of technological advances for Huawei as Beijing invests in its domestic semiconductor industry.