Huawei used Trump's stupid export ban to checkmate Nvidia

Right now, Nvidia is in a bit of a pickle, as the company can no longer sell its H20 AI chips to China. That’s unfortunate for the company, as these chips were pretty popular. However, Huawei has stepped in and announced its upcoming Ascend 920 chips, and the company has pretty much checkmated Nvidia.

To catch you up, Nvidia can no longer export its chips to China, thanks to the ongoing trade war. This means that it can’t sell its made-for-China AI chips to the country. Nvidia’s H20 chips were designed to comply with the export regulations that were placed on products going across the ocean. However, even that chip has been banned.

The main pity is that Nvidia’s H20 chips were selling rather well. The company saw a 50% increase QoQ before the ban took place. So, it’s now feeling a bit of the sting from the current situation. In fact, thanks to the ban, Nvidia is expected to take at least $5.5 billion in losses.

Huawei announces its new Ascend 920 AI chips

With Nvidia no longer able to sell its chips in China, Chinese companies will need a powerful alternative. That alternative could come from the country’s biggest tech company, Huawei. This brand has been surviving just fine, even having been exiled from the U.S. for years. It’s been able to source domestic components and start building its own chips.

The newly announced Ascend 920 chips are the successor to the Ascend 910C, which was unveiled not too long ago. The Ascend 920 boasts a 6nm process from SMIC. We’re looking at a 4000GB/s memory bandwidth and 900 TFLOPs, according to the source. It’s a formidable chip, and will more than likely replace Nvidia as the top pick for several companies. There are several companies jumping on the AI bandwagon, and they’re showing no sign of stopping.

This is just another example of a major tech company suffering the negative effects of Donald Trump’s second term. Companies like Google, Meta, and Apple are also feeling the burn. There’s no telling what will happen, but we can’t ignore the irony; the CEOs of these companies donated to Trump’s inaugural fund.

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