NVIDIA's next big rival is not another Big Tech company from the West but Huawei, the firm on track to dominate the AI segment in China. Huawei Could Very Well Make NVIDIA Irrelevant In The Chinese AI Markets, Marking a Massive Blow To The Company's Business When it comes to acknowledging competition, Team Green has done little despite being in the market for more than three decades, where you have rivals like Intel or AMD. Under NVIDIA's CEO Jensen Huang, the firm has managed to dominate its business segment for several years now, but now there's an "undeniable" panic within Jensen's camp, which is mainly due to how big of a rival has Huawei emerged itself to be, to a point where NVIDIA now feels threatened by the company. When looking at Chinese markets alone, Huawei dominates every space, including the AI segment. One of the reasons why Huawei has become such a significant factor for NVIDIA is that the US restrictions have forced Team Green to distance itself from the Chinese AI markets, which has given Huawei a massive opportunity, and the firm has capitalized on this. Based on what we know until now, the Chinese tech giant offers its Ascend 910B and 910C chips for the region, which are said to be equivalent in performance relative to the likes of NVIDIA's H100 AI accelerators, which are some of the most high-end chips out there. When you look at NVIDIA's position, the company is forced to sell its stripped-down solutions to the Chinese markets, and Team Green's upcoming AI chip is said to further bridge the performance gap by integrating relatively weaker technologies such as GDDR7. In terms of raw power, NVIDIA's next chip might not match what Huawei offers, which could be a massive blow to the company. However, Jensen will likely rely on his company's software ecosystem in order to be competent in domestic markets, but we know Huawei is fond of developing capable alternatives. Huawei isn't just building up AI chips; it has managed to vertically integrate the supply chain, from semiconductors to memory production. The Chinese giant is said to operate multiple fabs under different subsidiaries, and is claimed to have achieved persistent 7nm production. So NVIDIA isn't just rivaling a tech company here, it is in competition with one of China's largest business entities in terms of production, hence becoming obsolete isn't too far away for NVIDIA in China. NVIDIA's urgency to maintain its position in China is evident from Jensen's recent statements about US policies and how Team Green has been affected by the AI Diffusion policy. The company's future in China is definitely uncertain, and even after desperate attempts, NVIDIA will have a tough time maintaining its position. Deal of the Day