Huawei working on new AI chips to compete with Nvidia

Investing.com -- China’s Huawei Technologies is developing a new AI chip design that would expand the capabilities of its processors to handle a wider range of AI development tasks, according to a report by The Information on Friday.

The new design would reportedly more closely resemble the architecture used by both Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD). This similarity should make it easier for Chinese AI developers to transition from Nvidia’s chips to Huawei’s alternatives.

Huawei aims to make its chips more attractive to Chinese tech companies, which currently prefer Nvidia’s processors despite increasing difficulties in obtaining them due to U.S. export controls.

While Chinese tech firms have tested Huawei chips, few have fully adopted them. This reluctance stems largely from the challenges developers face in adapting to Huawei’s distinct software system after years of building products using Nvidia’s Cuda software.

With the planned new chip design, AI developers using Huawei’s processors will be able to run code written for Nvidia’s software platform. However, Huawei will still need to develop software that translates commands from Nvidia’s software into instructions its own chips can understand.

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