Nvidia Panics Over Huawei Chip Surge

NVIDIA head Jensen Huang asked US lawmakers to ease export rules during a private meeting with the House Foreign Affairs Committee. He warned that current restrictions give Chinese firm Huawei room to grow its AI chip business. His concerns came after Huawei released a new AI system called CloudMatrix 384 that matches NVIDIA's latest technology.

American trade limits pushed Chinese companies to make their chips instead of buying from US firms. Tech giants in China already use Huawei Ascend chips instead of NVIDIA products. The gap between Chinese and American chip tech keeps shrinking, exactly what Huang fears most. His company faces more challenges with the upcoming AI Diffusion rule that limits where NVIDIA can sell its products.

NVIDIA lost sales when the US banned its H20 AI chip from China earlier this year. Huang believes open-source AI models might work better on Huawei chips, creating global demand for Chinese hardware. Tight US policies let Huawei catch up faster than expected in the worldwide AI race.
 

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