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American Focus > Blog > Economy > Nvidia acknowledges Huawei challenge after rival launches AI cluster
Economy

Nvidia acknowledges Huawei challenge after rival launches AI cluster

Last updated: September 20, 2025 3:55 pm
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Nvidia acknowledges Huawei challenge after rival launches AI cluster
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Huawei, a Chinese telecommunications giant, is making waves in the artificial intelligence (AI) industry with the announcement of new computing systems powered by its proprietary Ascend chips. The company unveiled its upcoming “Atlas 950 SuperCluster,” set to launch next year, as part of its efforts to compete with U.S. rival Nvidia.

In response to U.S. efforts to limit China’s access to advanced semiconductors for AI training, Chinese companies like Huawei have turned to alternative strategies. Huawei’s new Ascend chips aim to double compute capabilities with each yearly release, forming the foundation of its AI computing infrastructure.

The new Atlas 950 supernode from Huawei will support 8,192 Ascend chips, while the Atlas 950 SuperCluster is expected to utilize over 500,000 chips. Additionally, Huawei plans to release an even more advanced version, the Atlas 960, in 2027, capable of supporting 15,488 Ascend chips per node.

During a recent speech, Eric Xu, Huawei’s vice chairman, claimed that the forthcoming Atlas 950 supernode would outperform Nvidia’s NVL144 system by 6.7 times in terms of computing power. Xu also predicted that Huawei’s product would surpass another Nvidia system planned for launch in 2027 and even outperform Elon Musk’s xAI Colossus supercomputer.

While some industry experts caution that Huawei’s technical capabilities may be exaggerated, there is no denying the company’s ambition to establish itself as a global leader in AI technology. Huawei’s focus on self-reliance and innovation aligns with the Chinese government’s emphasis on developing indigenous chip technologies.

Huawei’s advancement in AI computing comes at a time when China is actively promoting domestic alternatives to foreign technologies. With ongoing trade tensions and regulatory challenges, companies like Huawei are strategically positioning themselves to compete on a global scale.

See also  Salesforce's AgentExchange launches with 200+ partners to automate your boring work tasks

As Huawei continues to push the boundaries of AI technology, the industry is witnessing a new era of innovation and competition. The company’s commitment to advancing AI capabilities through its proprietary Ascend chips underscores its determination to lead the way in the rapidly evolving field of artificial intelligence.

TAGGED:AcknowledgesChallengeClusterHuaweiLaunchesNvidiarival
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