Just one year after entering the market for Artificial Intelligence chips, Huawei is already pushing NVidia to aggressively cut prices in a bid to stay competitive in China, which contributes a large share of NVidia's revenues and profits.
Huawei's Ascend 910-B was introduced as a rival chip to NVidia's H20, which was designed for the Chinese market. The Ascend is reportedly faster and shows superior performance, and commands a higher price.
Experts predicted in just October of last year that Huawei would need five to ten years to compete effectively against NVidia in the AI chips market.
But the recent experience of NVidia mirrors that of Tesla and Apple, who were also forced to slash prices in China to remain competitive. Tesla and Apple, however, have huge advantages that are not available to NVidia: both use China as its factory, to export to markets around the world. NVidia doesn't enjoy that option.
Resources and links:
Apple slashes iPhone prices in China amid fierce Huawei competition
www.reuters.co...
Tesla cuts prices in US, China and Germany as competition heats up
www.cnn.com/20...
Exclusive: Nvidia cuts China prices in Huawei chip fight
www.reuters.co...
Nvidia Slashes AI Chip Prices As Huawei Launches China Discount War
www.zerohedge....
US chip curbs give Huawei a chance to fill the Nvidia void in China
www.reuters.co...
Nvidia plans to release three new chips for China - analysts
www.reuters.co...
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