Citing sources familiar with the matter, the Wall Street Journal revealed that Huawei’s new AI chip aims to compete with — and potentially replace, some higher-end products currently dominated by Nvidia, particularly the company's powerful H100 chips.
South China Morning Post
Amid the ongoing tariff tensions between China and the United States, Chinese multinational technology giant Huawei Technologies Co., Ltd. appears to be making major advancements in the AI computing sector. According to a Wall Street Journal report published on April 26, 2025, Huawei is preparing to test its newest and most powerful artificial intelligence (AI) processor — a development seen as a direct challenge to U.S. chipmaker Nvidia Corporation.
Citing sources familiar with the matter, the Wall Street Journal revealed that Huawei’s new AI chip aims to compete with — and potentially replace, some higher-end products currently dominated by Nvidia, particularly the company's powerful H100 chips.
This development comes shortly after Nvidia announced a major expansion of its U.S. manufacturing capabilities. On April 14, 2025, the Associated Press (AP) reported that Nvidia plans to begin producing AI supercomputers in the United States for the first time. The company aims to invest heavily, targeting up to USD500 billion worth of AI infrastructure over the next four years. This move follows the Trump administration’s decision to grant temporary tariff exemptions on electronics such as smartphones and laptops while it devises a new tariff strategy specifically for the semiconductor sector.
The engines of the world’s AI infrastructure are being built in the United States for the first time. Adding American manufacturing helps us better meet the incredible and growing demand for AI chips and supercomputers, strengthens our supply chain, and boosts our resiliency.
While Nvidia is ramping up efforts domestically, Huawei is advancing rapidly in China. Reuters reported that Huawei is set to receive the first batch of samples of its latest AI chip — an upgraded version of its Ascend 910C — in May 2025. The new processor is expected to surpass Nvidia’s H100 in certain performance metrics and is scheduled for mass shipments to Chinese customers shortly thereafter.
Further strengthening its position, Huawei announced the launch of the world’s first commercial Ascend Super Node, jointly developed with China Telecom, through an announcement by Huawei Central Newsroom on April 26, 2025. The launch events were held in Guangdong, Hong Kong, Macao, and Shaoguan. Although detailed technical specifications have not been fully disclosed, the new super node is designed to manage a large number of network connections and perform specialized tasks like intelligent routing and proxying — critical functions for large-scale AI data centers.
Huawei’s advancements are significant given that it continues to face heavy U.S. sanctions, limiting its access to cutting-edge semiconductor manufacturing tools and foreign chip technology. Despite these restrictions, Huawei has been leveraging domestic innovation and partnerships, particularly with companies like SMIC (Semiconductor Manufacturing International Corporation), to manufacture advanced chips like the 7nm-class Kirin 9000S for smartphones, and now its new-generation AI chips.
Analysts suggest that Huawei's push into high-end AI computing could reshape the competitive landscape, especially within China, where domestic demand for AI solutions is surging amid geopolitical tensions.
As details about Huawei's Ascend 910C performance and the commercial applications of its Ascend Supernode emerge, the competition between Huawei and Nvidia — two of the world’s leading forces in AI hardware, looks set to intensify.
