Jensen Huang doesn’t throw around compliments lightly. So when the NVIDIA CEO openly declared that Huawei is the “single most formidable” tech company in China, the industry took notice.
In an interview with the Financial Times, Huang admitted what many have suspected: Huawei isn’t just a player in AI anymore—it’s becoming the player in China. And that spells trouble for NVIDIA.
The Growing Threat of Huawei’s AI Ambitions
For years, NVIDIA dominated China’s AI market, providing the essential hardware that powered everything from cloud computing to autonomous driving. The U.S. government’s export restrictions, however, flipped the script.
With Washington tightening its grip on high-performance AI chips, China had no choice but to accelerate domestic production. And leading that charge? Huawei.
- The company has been using China-made chips in its flagship Mate smartphones since 2023.
- It’s set to launch its next-gen Ascend 910C AI chip, reportedly matching the performance of NVIDIA’s H100 accelerators at a better price.
- Huawei has conquered every market it has entered, Huang himself admitted.
Translation? NVIDIA is facing a serious problem.
Huawei’s AI Rise: A Problem of NVIDIA’s Own Making?
While U.S. sanctions were meant to weaken China’s AI capabilities, they seem to have supercharged them instead. Huawei has become more self-sufficient, and its AI hardware ecosystem is expanding rapidly.
This puts NVIDIA in a tricky spot:
- Losing Market Share – China was a major revenue driver for NVIDIA’s data center and AI business. However, as Chinese firms shift to Huawei’s domestic AI solutions, NVIDIA’s grip weakens.
- More U.S. Restrictions Incoming – If Huawei’s AI chips reach NVIDIA’s level (or close to it), expect even stricter U.S. sanctions. This could cut off NVIDIA’s AI chip sales to China entirely.
- Limited Counterplay – Unlike in the past, NVIDIA can’t outcompete Huawei regarding price and performance. Trade restrictions have made that impossible.
Can NVIDIA Hold the Line?
For now, NVIDIA still leads the global AI chip race, but the tide is shifting in China. Jensen Huang’s latest remarks aren’t just an acknowledgment of Huawei’s rise but a warning.
If Huawei keeps up its momentum, NVIDIA may soon be locked out of the world’s second-largest economy. And once that happens, the battle for AI supremacy will take a new turn.
