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Huawei Preparing to Ship New AI Chip as China Seeks Alternatives to Nvidia Solutions

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Huawei Technologies is set to begin mass shipments of its new 910C artificial intelligence chip to Chinese customers as early as next month, according to sources familiar with the matter. These shipments come at a crucial time, as China faces increasing challenges in securing domestic alternatives to Nvidia’s AI chips, which have been restricted due to escalating tensions between the U.S. and China. Some shipments of the Huawei 910C have already been made, with many Chinese AI companies eagerly awaiting a local solution to meet their growing demand for high-performance AI hardware.

The timing of the release is significant, as Chinese AI firms have been scrambling to find alternatives to Nvidia’s H20 chip, which had been widely used in AI development. Recently, the U.S. government announced that sales of the H20 to China would now require an export license, placing additional strain on Chinese tech companies that rely heavily on Nvidia’s advanced GPUs for AI research and deployment. With the Huawei 910C, China is looking to reduce its dependency on foreign technology, particularly in the critical area of AI chip development.

The Huawei 910C, which is a graphics processing unit (GPU), represents an evolution of the company’s previous offerings rather than a revolutionary breakthrough. The 910C combines two 910B processors into a single package using advanced integration techniques, delivering performance that rivals Nvidia’s H100 chip. This architectural design allows Huawei to provide a competitive product without entirely reinventing the wheel, making it an appealing alternative for AI applications in China. While the company has yet to publicly confirm the details of the chip’s capabilities or its shipment schedule, the timing aligns with the urgent need for domestic alternatives to Nvidia’s technology.

The geopolitical context behind the 910C’s development is important, as the U.S. has been restricting the sale of its most advanced AI products to China, citing national security concerns. In addition to the H20 chip, China has also been cut off from Nvidia’s flagship B200 chip, further intensifying the need for local solutions. As Huawei ramps up its efforts to ship the 910C, it is positioning itself as a key player in China’s push to maintain technological independence in the face of foreign restrictions.

H3C Warns of Nvidia AI Chip Shortage as Chinese Demand Surges

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One of China’s top server manufacturers, H3C, has reportedly warned of a looming shortage of Nvidia’s H20 AI chip—the most advanced processor currently available for sale in China under U.S. export rules. The notice, seen by Reuters, indicates rising concerns about disruptions in the international supply chain and signals possible obstacles for China’s AI development ambitions.

According to the document dated Tuesday, H3C informed clients that existing inventories of the H20 chip are “nearly depleted,” with new shipments only expected around mid-April. The notice blamed geopolitical tensions and raw material disruptions for the uncertainty. It also highlighted challenges in future supply planning beyond April 20 due to changes in shipping routes, production complications, and evolving policy environments.

Shortly after publication, Nvidia declined to comment, and H3C issued a clarification stating that “neither the company nor any of its departments have issued this notice or its related content.” However, industry sources confirmed that the chip is becoming increasingly difficult to obtain.

. AI Boom Driving Surging Demand
Demand for the H20 has sharply risen since January, driven by the popularity of Chinese startup DeepSeek’s cost-efficient AI models. Major Chinese tech giants such as Tencent, Alibaba, and ByteDance have ramped up orders in response, according to previous reporting by Reuters.

An anonymous distributor told Reuters that despite prior assurances about availability, many buyers were ultimately told the chips had already been sold at higher prices. “We were told the chips would be available, but when it came time to actually purchase them, we were informed they had already been sold at higher prices,” the source said.

. Geopolitical Pressures and U.S. Export Controls
The H20 chip was specifically designed by Nvidia to comply with tightened U.S. export restrictions implemented in October 2023. These rules ban the sale of the company’s most powerful chips—such as the A100 and H100—to China over national security concerns. The U.S. believes advanced AI chips could potentially be used to bolster China’s military capabilities.

Despite these restrictions, Nvidia is believed to have shipped around 1 million units of the H20 to China in 2024, generating over $12 billion in revenue.

Washington is also reportedly considering further limitations on even these lower-tier chips, raising the risk of additional constraints on China’s access to cutting-edge AI technologies.

. China’s Response and Domestic Alternatives
H3C is one of Nvidia’s key OEM partners in China, alongside Inspur, Lenovo, and xFusion—a spinoff from Huawei focused on x86 servers. The looming shortage could accelerate China’s efforts to develop and adopt domestic alternatives such as Huawei’s Ascend chips and Cambricon’s AI processors.

H3C’s internal communication reportedly emphasized a “profit-first” distribution model for upcoming chip deliveries, favoring long-term, high-margin customers. This signals that the chip shortage could hit smaller AI startups and new entrants the hardest, potentially reshaping China’s fast-evolving AI ecosystem.

Huawei Nears Revenue Peak Again, Signals Post-Sanctions Comeback

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Huawei is set to announce its full-year financial results, revealing a near-return to its 2020 revenue peak despite years of U.S. sanctions. The Chinese tech giant is expected to report revenues of 860 billion yuan ($118 billion) for 2024—just shy of the record 891 billion yuan it achieved before U.S. restrictions slashed its consumer business and chip supplies.

Once in “survival mode,” Huawei now appears to be thriving again. The company has diversified into new sectors like smart driving technology, cloud software, and domestic chip development. These efforts have helped mitigate the impact of sanctions that once seemed poised to cripple its international business.

Smartphones and Software Recovery
Consultancy Isaiah Research estimates Huawei shipped over 45 million smartphones in 2024—up more than 25% year-on-year—despite continued constraints in chip yield rates. Its homegrown operating system, HarmonyOS, now powers over a billion devices. Meanwhile, Huawei’s own enterprise software system, “MetaERP,” has replaced U.S.-origin platforms like Oracle.

Auto Ambitions Paying Off
One of Huawei’s most successful pivots has been into smart vehicles. Its Aito brand—developed with Dongfeng-backed Seres—tripled its sales last year, driven by models like the M7 and M9 that feature Huawei’s driver assistance technologies. The company is also collaborating with other Chinese automakers like Chery, BAIC, JAC Group, and SAIC Group.

Innovation Under Pressure
Experts say sanctions pushed Huawei and its domestic partners toward greater innovation. “Huawei has shown incredible resilience in the face of this national state-led effort,” said Paul Triolo of the DGA-Albright Stonebridge Group. He noted that Huawei’s resurgence has led to broader industry collaboration and technological independence within China’s IT sector.

Looking Ahead: Global Patchwork Strategy
While HarmonyOS and its AI chips are gaining traction, Huawei still faces challenges regaining market share in the West due to limited access to Android. However, its infrastructure and data services are growing in markets like the Middle East. Huawei’s global strategy will likely be a “patchwork affair,” said Triolo, but it could dominate in alternative AI ecosystems across key emerging markets.

Beyond Survival
With ambitions to integrate AI into industrial communication systems and expand its connected software offerings, Huawei’s focus is now on long-term growth. It also hinted at renewed international smartphone pushes, such as its high-profile Mate XT foldable phone launch in Malaysia earlier this year.