Huawei Ascend Chips vs NVIDIA: Which is more powerful?

The battle between Huawei and NVIDIA is becoming more intense as artificial intelligence hardware demand grows in China. Once dominated by NVIDIA, the market is now seeing increased interest in Huawei’s Ascend series. 

These chips are being used as alternatives to NVIDIA’s GPUs, particularly following export restrictions. But how do the two compare in terms of performance, demand, and innovation? Let’s explore this growing rivalry and what it means for the global AI hardware landscape.

Huawei’s Resurgence and the Rise of Ascend AI Chips

Huawei's presence in the AI chip industry has seen a significant turnaround. After facing major setbacks due to US sanctions in 2019, the company struggled to compete in the advanced computing space. 

Without access to top-tier manufacturing tools and external support, Huawei faced supply issues and delays in chip development. However, the company remained persistent.

Over time, Huawei improved its capabilities and began rolling out new AI processors. One of the major milestones came when ByteDance reportedly ordered 100,000 units of the Ascend 910b chip. 

This signalled growing confidence in Huawei’s ability to deliver effective AI hardware. It also marked a shift away from dependence on NVIDIA’s restricted chips like the H20, which had limited performance but remained widely used due to lack of alternatives.

The introduction of the Ascend 910c marked a turning point. This chip was designed to compete directly with NVIDIA’s powerful H100 GPU. 

It is capable of delivering up to 800 TFLOP/s in FP16 mode, placing it among the top-performing chips available in China. The 910c integrates two 910b chips and offers a memory bandwidth of 3.2 TB/s. 

Though not matching the H100 in raw power, it reportedly reaches about 60% of its inference performance. In some scenarios, it even surpasses NVIDIA’s B20 model.

With the NVIDIA H20 facing tighter restrictions and rising demand for domestic alternatives, Chinese companies like China Mobile and SenseTime are now increasingly choosing Huawei's Ascend 910c. 

This shift indicates a growing reliance on local solutions, and Huawei appears well-positioned to take advantage.

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NVIDIA’s Position in China and the Effects of US Sanctions

NVIDIA has long dominated the global AI chip market, and China has been a major customer. However, following US government export restrictions, NVIDIA was limited to selling chips with reduced performance, such as the H20. 

Although these products were not ideal, Chinese firms adopted them due to a lack of domestic competition.

The H20 was designed specifically to comply with export rules. It offered lower performance to meet regulation limits, allowing sales to continue. 

However, this compromise led to increasing dissatisfaction among Chinese buyers, who began seeking more capable options for large-scale AI development.

Meanwhile, Huawei continued improving its chip design and slowly filled the performance gap. As Ascend chips gained traction, NVIDIA began to feel the pressure. The recent development of Huawei’s “CloudMatrix 384” chip cluster further intensified competition. 

It is reportedly more efficient than NVIDIA’s NVL72, underlining Huawei’s broader ambition to challenge the American firm beyond individual chips.

Facing this challenge, US regulators tightened restrictions even further. In the latest round of sanctions, authorities demanded NVIDIA stop selling the H20 in China unless they obtained a $5.5 billion licence. This move created a gap in the market just as Huawei’s production was scaling up.

NVIDIA’s CEO, Jensen Huang, acknowledged the growing threat from Huawei. He described the Chinese company as a serious competitor in both computing and networking technologies. 

He also noted that while restrictions have slowed NVIDIA’s operations, they may be driving innovation in China, pushing companies like Huawei to become more resourceful and technically capable.

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The Battle Ahead: Ascend 910D and the Future of AI Hardware in China

Looking forward, the chip rivalry is set to intensify with Huawei’s upcoming Ascend 910d chip. Designed as an upgrade to the 910c, the 910d aims to outperform NVIDIA’s limited chips while offering a solution to Chinese firms that need powerful AI processors without relying on imported technology.

The Ascend 910d is being positioned as a direct replacement for the H20, which is now unavailable due to regulatory restrictions. Test samples of the 910d are expected by the end of May 2025, with full deployment likely in the second half of the year. 

While official specifications have not been released, industry sources suggest that the chip will focus on improved efficiency, compatibility with existing systems, and greater stability under high computational workloads.

This development could further shift the balance in Huawei’s favour, particularly if the 910d delivers consistent performance in AI training and inference environments. 

The fact that companies like SenseTime and ByteDance have already shown interest in earlier Ascend models suggests there will be strong uptake if the 910d meets expectations.

At the same time, NVIDIA’s options in China are shrinking. With restricted sales and competition rising, the company may need to explore other markets or consider partnerships in less regulated regions. In contrast, Huawei’s strategy seems focused on domestic strength and gradual expansion.

What happens next will likely depend on several factors, including how quickly Huawei can improve its manufacturing efficiency. 

The current yield for the 910c remains around 30% due to reliance on older lithography techniques. If the company can improve its output while maintaining chip quality, it could capture a significant share of the AI hardware market in China, and possibly beyond.

Read more: The Chinese AI Technology That Crippled BTC and Nvidia

Conclusion

Huawei’s Ascend chips have come a long way and are now seriously challenging NVIDIA’s position in China. 

With rising demand, growing technical performance, and ongoing US restrictions on foreign chips, Huawei is well-placed to expand its influence in the AI hardware sector. The upcoming Ascend 910d could mark another step forward in this ongoing shift.

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Frequently Asked Questions

1. What makes Huawei's Ascend chips competitive against NVIDIA?

Ascend chips like the 910c offer strong performance in AI tasks, reaching up to 60% of NVIDIA’s H100 and outperforming some models like the B20 in certain cases.

2. Why is NVIDIA losing ground in China?

US restrictions have limited NVIDIA’s ability to sell high-performance chips in China, allowing Huawei to fill the gap with more capable domestic alternatives.

3. When will the Ascend 910d chip be available?

Test samples are expected by late May 2025, with wider rollout anticipated in the second half of the year.

Investor Caution 

While the crypto hype has been exciting, remember that the crypto space can be volatile. Always conduct your research, assess your risk tolerance, and consider the long-term potential of any investment.

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