When considering AI hardware, NVIDIA often emerges as a key player. The company produces much of the necessary equipment powering AI data centers globally. While competitors like Intel and AMD are typically regarded as rivals, NVIDIA’s CEO, Jensen Huang, has identified Huawei as an even closer competitor. Huawei’s standing as NVIDIA’s true rival stems from the current landscape of AI development.

Although AMD and NVIDIA are recognized as competing forces in the GPU sector, AMD has not made significant strides in the AI arena. Given the strict sanctions imposed by the U.S. government on Huawei, one might assume the company is struggling. Interestingly, these very sanctions have proven to be a double-edged sword, limiting the business dealings of U.S. companies with Huawei and vice versa. As a result, NVIDIA has had to scale back its shipments of AI chips to China, inadvertently allowing Huawei to strengthen its position within the expansive Chinese market, which remains impossible to overlook.

Huang has criticized these export controls, suggesting they have not only cost NVIDIA substantial revenue but also enabled Huawei to gain traction locally. He remarked on the talents and determination of local companies, indicating that export restrictions have catalyzed their development. Since its placement on the U.S. Entity List, Huawei has indeed faced significant setbacks in the smartphone sector.

Initially poised to surpass both Apple and Samsung, the ban hindered its momentum. However, the Chinese market remains robust, with continued strong demand for Huawei’s phones. The company has been methodically rebuilding its presence, introducing its own Android alternative, HarmonyOS, and making strides toward manufacturing its chipsets. Although its technology may not yet match Qualcomm’s, Huawei is progressively advancing in this domain.