Huawei Challenges Nvidia with Brute Force Strategy in AI Chip Market

Huawei is challenging Nvidia's dominance in AI with a three-year plan to cluster a massive number of Ascend processors via a new UnifiedBus interconnect system. Huawei claims its design can move data up to 62 times faster than Nvidia's NVLink144 technology. The company also unveiled future Ascend 950, 960, and 970 chips and self-designed high-bandwidth memory. Huawei's plan aligns with Washington's tightening curbs on Chinese access to advanced semiconductors and Beijing's push for national champions like Huawei.

Huawei has unveiled a three-year plan to challenge Nvidia's dominance in the artificial intelligence (AI) chip market, aiming to cluster a massive number of Ascend processors via a new UnifiedBus interconnect system. This strategy, announced at Huawei Connect 2025, centers on leveraging the company's networking expertise and government support to narrow the gap with Nvidia.

Huawei's rotating Chairman Eric Xu presented a plan that involves clustering thousands of Ascend AI chips into powerful SuperPod systems. The company claims that this design can move data up to 62 times faster than Nvidia's upcoming NVLink144 technology Huawei Bets On Brute Force To Outpace Nvidia^[1]. The new design will connect up to 15,488 processors and scale into super clusters with about 1 million cards.

In addition to the interconnect system, Huawei has introduced self-designed high-bandwidth memory (HBM) and outlined future Ascend 950, 960, and 970 chips. The Ascend 950, set for release in Q1 2026, will integrate Huawei's proprietary HBM, dubbed HiBL 1.0 and HiZQ 2.0 Huawei’s AI Superchip Power Play Shakes Up Nvidia’s Throne^[2]. These chips will feature specialized variants tuned for different AI tasks.

Huawei's plan aligns with Washington's tightening curbs on Chinese access to advanced semiconductors and Beijing's push for national champions like Huawei. The company has been working on developing domestic alternatives to foreign chips, particularly since U.S. sanctions in 2019 cut it off from Taiwan Semiconductor Manufacturing Co. (TSMC).

Nvidia, despite the challenge, remains the dominant player in the AI accelerator market. However, Huawei's aggressive strategy signals a significant shift in the tech landscape. The company's move underscores China's drive for tech self-reliance and resilience in the face of export restrictions.

Analysts note that while Huawei still lags technologically, its brute force approach, networking know-how, and government support could narrow the gap. Nvidia's CEO Jensen Huang acknowledged the high-stakes U.S.-China tech rivalry, noting that both Washington and Beijing have larger agendas to work out in this AI chip standoff.

The timing of Huawei's announcement is notable, coming just as China's regulators reportedly ordered tech firms to halt purchases of Nvidia AI chips and launched a probe accusing Nvidia of violating anti-monopoly laws Huawei’s AI Superchip Power Play Shakes Up Nvidia’s Throne^[2]. This move highlights the broader AI chip race, with competitors like AMD, Intel, Alibaba, and Baidu also rolling out their own AI accelerators.

As the geopolitical tensions between the U.S. and China escalate, Huawei's aggressive push for AI dominance may trigger even tighter export curbs from Washington. The tech rivalry is intensifying, with companies like Nvidia increasingly becoming pawns in a digital Cold War.