Huawei, the Chinese tech giant, is reportedly developing a new AI chip, the Ascend 910D, which could potentially rival high-end processors like Nvidia's. The chip is still in its early stages, and Huawei plans to begin testing it soon, with local tech firms expected to receive sample chips by late May. If successful, this AI processor could outperform Nvidia’s H100 chip, which was widely used for AI training in 2022.

Huawei is also prepared to sell over 800,000 units of older versions of the Ascend 910 processor, including models 910B and 910C, to a variety of clients, including state-owned telecommunications and private AI companies such as ByteDance, the parent company of TikTok. Amid escalating trade tensions between China and the US, Beijing has urged Chinese developers to buy more domestic chips, reflecting a push for self-reliance in AI technology.

In a related development, US-based Nvidia announced it could face around $5.5 billion in charges due to restrictions on selling its AI chips to China. The US government has added Nvidia’s H20 chip to a list of semiconductors restricted for sale to China, alongside key components like high-bandwidth memory units.

Huawei is also working on developing quicker and more efficient artificial intelligence systems, such as the CloudMatrix 384 system, which uses arrays of Ascend 910C chips to provide processing capability without the necessity of individual chips being more powerful.

China’s push for AI self-reliance is also backed by President Xi Jinping, who emphasized the importance of strengthening technological innovation and mastering core technologies like high-end chips and software. This approach is part of China's broader goal to develop an independent AI ecosystem, free from reliance on foreign technology.

Meanwhile, the US-China trade relationship remains tense. Former US President Donald Trump urged Xi to negotiate a trade deal following the imposition of high tariffs on Chinese goods, but China has firmly stated it does not seek discussions and asked the US to "stop creating confusion."