Nvidia Identifies Huawei as Key Competitor in AI Chip Sector
Nvidia, a leading technology company based in Santa Clara, has recognized Huawei as a significant competitor in several crucial areas, particularly in the production of processors vital for artificial intelligence (AI) systems.
In its annual report released on Wednesday, Nvidia acknowledged Huawei as a top competitor in four out of five major categories of its business, encompassing the provision of software and hardware for graphic processing units (GPUs), which play a pivotal role in generative AI applications.
Among other companies listed as rivals in various sectors are AMD, Amazon, Microsoft, and Broadcom.
This acknowledgement from Nvidia comes shortly after Jensen Huang, the CEO of Nvidia, described Huawei as a “formidable” competitor in AI chip production during a press briefing in Singapore, as reported by Reuters.
Huawei, headquartered in Shenzhen, gained attention last year with the launch of the Mate 60 Pro, a cutting-edge smartphone powered by advanced chips. Despite facing restrictions on access to 5G technology due to US sanctions, Huawei’s breakthrough marked a significant achievement for China in the semiconductor industry.
Geopolitical tensions between the United States and China have further complicated the landscape for technology firms. The Biden administration and other countries have implemented restrictions on the export of chipmaking technology to China, prompting retaliatory measures from Beijing.
Nvidia has expressed concerns about being entangled in these geopolitical tensions, warning that changes in US export controls on chips could adversely affect its competitive position and market access.
Despite reporting robust earnings for the fourth quarter, Nvidia noted a decline in its China business due to US restrictions on chip sales to the country. While its data center revenue saw significant growth, sales in China experienced a decline following the imposition of export control regulations.
Colette Kress, Nvidia’s CFO, highlighted that China represented a mid-single-digit percentage of the company’s data center revenue in the fourth quarter, with expectations for a similar range in the current quarter.
