The order by one of China's leading AI firms adds to signs that US pressure is prompting Chinese acceptance of Huawei's products as an alternative to those of American chip giant Nvidia.
It’s kinda to be expected. US export controls are preventing the sale of NVida chips to Chinese companies. Those companies can either adapt or go out of business. So, they are adapting. China also have a sizable semi-conductor industrial base; so, we should expect to see some switch to domestic production to de-risk their supply chain. While it will be a long time (if ever) for that domestic production capability to catch up with US based companies, the current situation does give them an incentive and source of funding to try. It will be interesting to see, going forward, if Huawei can improve on their technology and processes to challenge NVidia.
It’s kinda to be expected. US export controls are preventing the sale of NVida chips to Chinese companies. Those companies can either adapt or go out of business. So, they are adapting. China also have a sizable semi-conductor industrial base; so, we should expect to see some switch to domestic production to de-risk their supply chain. While it will be a long time (if ever) for that domestic production capability to catch up with US based companies, the current situation does give them an incentive and source of funding to try. It will be interesting to see, going forward, if Huawei can improve on their technology and processes to challenge NVidia.