ByteDance, one of the largest AI companies in China, plans to acquire a large stock of AI chips from Huawei to develop a new model solely from its internal hardware. This strategy could mark a significant turning point for domestic AI solutions in the Chinese market.
Growing Adoption of Home AI Solutions
The trend toward Chinese AI solutions appears to be accelerating, now driven not only by the government but also regional tech giants. Constant changes in U.S. trade policies and the resulting uncertainty are causing companies to shy away from NVIDIA and to turn to local alternatives, in particular those offered by Huawei.
According to reported information, ByteDance has already acquired over 100 000 Ascend 910B chips this year. However, due to supply restrictions of Huaweithe company only received 30% of his initial order. Despite these obstacles, optimism remains strong around Huawei’s AI solutions, as ByteDance plans to use these chips for low-power tasks.
ByteDance asserts itself as one of the largest buyers of AI equipment in China, also being a major customer of NVIDIA for the acquisition of hardware, such as the H20 accelerators. With more than 10 millions of active users of its AI services, the company must increase its computing power to remain competitive in the market. The acquisition of Ascend 910B chips offers access to a broader hardware base, even in a difficult supply context.
Future Developments In The AI Market
Recently, information has emerged about plans to Huawei to evolve its AI offerings by introducing the Ascend 910C chip. This new model is designed to compete with the H100 accelerators of NVIDIA. This could increase Huawei’s market share in the home AI sector, providing performance on par with current leaders.
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The arrival of the Ascend 910C in the markets could disrupt the dynamics and lead to a significant redistribution of shares between players in the sector. With such a breakthrough, Huawei could potentially capture a considerable share of the AI accelerator market in China, strengthening its position as a leader in technological innovation.
ByteDance and other Chinese companies are desperate to catch up in the face of NVIDIA which dominates the AI chip market. By turning to domestic solutions and building an ecosystem based on Chinese components, these companies are trying to reduce their dependence on foreign suppliers.
