For the first time, Nvidia Corporation NVDA has named Huawei Technologies as a major rival in the artificial intelligence (AI) chip market.
What Happened: Nvidia, in a filing with the Securities and Exchange Commission on Wednesday, recognized Huawei as a top competitor in various categories, including AI chips, Reuters reported on Friday. The filing highlights Huawei’s involvement in supplying AI chips such as graphics processing units, central processing units, and networking chips.
The Chinese tech giant has also been identified as a cloud service provider, developing its hardware and software to enhance AI computing. This acknowledgment comes amidst the ongoing chip constraints, which have led Huawei to shift its focus towards AI.
Nvidia also listed other competitors, including Intel, Advanced Micro Devices, Broadcom, and Qualcomm. The company’s shares rose by 14% following a strong AI demand forecast.
While Nvidia declined to comment on the matter, Huawei has yet to respond to the queries sent by Benzinga.
Why It Matters: The acknowledgment of Huawei as a significant competitor aligns with the intensifying battle for AI dominance. Despite facing challenges from U.S. sanctions and chip constraints, Huawei has maintained its position as a market leader in Chinese smartphone sales.
Meanwhile, Nvidia’s market cap has nearly reached $2 trillion, reflecting its strong performance and market position. This latest development with Huawei underscores the significance of the AI market and the fierce competition among key players.
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