In its annual report released on Wednesday, Nvidia has acknowledged Huawei as a significant competitor, particularly in the critical domain of producing processors for artificial intelligence (AI) systems.
Nvidia, headquartered in Santa Clara, outlined in its report that Huawei competes in four out of five major categories within its business. This includes providing both software and hardware for graphic processing units (GPUs), which play a crucial role in various applications of generative AI.
Among the list of competitors mentioned in specific areas are AMD (AMD), Amazon (AMZN), Microsoft (MSFT), and Broadcom (AVGO).
This recognition of Huawei as a competitor follows Nvidia CEO Jensen Huang’s recent statement in Singapore, where he referred to the Chinese tech giant as a “formidable” contender in the field of AI chip production, as reported by Reuters.
Last year, Huawei, based in Shenzhen and known for its smartphones and telecom equipment, surprised the industry by unveiling the Mate 60 Pro—a cutting-edge phone powered by advanced chips. This development raised questions about how Huawei managed to manufacture such a device amid the four-year US restrictions limiting its access to 5G technology.
Analysts have regarded the Mate 60 Pro’s launch as a “milestone” achievement for China, particularly given the ongoing technological rivalry between Beijing and Washington, especially in the semiconductor sector.