Nvidia Cedes China AI Chip Market to Huawei as Revenue Jumps 85%
Updated
Updated · CNBC · May 21
Nvidia Cedes China AI Chip Market to Huawei as Revenue Jumps 85%
6 articles · Updated · CNBC · May 21
$81.62 billion in quarterly revenue gave Nvidia room to announce an $80 billion buyback, even as Jensen Huang said the company has "largely conceded" China’s AI chip market to Huawei.
U.S. export curbs drove that retreat: after Washington told Nvidia in April it needed licenses to ship advanced chips to China and several other countries, Huang told investors to "expect nothing" on approvals.
China had once contributed at least one-fifth of Nvidia’s data center revenue, and Huang said the company’s exit has strengthened Huawei and a broader local chip ecosystem.
Huang said Nvidia would return if rules change, but a U.S. trade representative said chip controls were not part of last week’s China talks, suggesting any reopening for H200 sales remains distant.
Will U.S. sanctions backfire by creating a more powerful and self-reliant AI competitor in China?
Can Huawei’s software ecosystem ever truly challenge the global dominance of Nvidia’s established CUDA platform?
As two separate AI empires rise, what are the unseen costs to global supply chains and energy resources?
US Export Controls Propel Huawei to 60% Market Share in China’s AI Chip Sector, Reshaping Global Tech Landscape
Overview
Huawei has quickly become the dominant player in China’s AI chip market by focusing on technological self-sufficiency and responding to a changing geopolitical environment. The company’s rapid progress, especially with its Ascend series processors like the Ascend 950PR, has outpaced Western expectations. Huawei’s strong product development, large-scale production, and widespread adoption by major Chinese firms highlight its market capture. This success is closely tied to China’s broader strategy to reduce reliance on foreign technology, driven by US export controls, and marks a significant shift towards an independent domestic AI ecosystem.