By Anusuya Lahiri
Publication Date: 2026-03-29 01:31:00
Alibaba Group Holding Limited and other Chinese tech firms are accelerating a shift toward domestic AI chips as U.S. restrictions on Nvidia Corp. reshape the competitive landscape and boost Huawei’s position.
Alibaba and ByteDance are preparing to order Huawei’s latest AI chips after customer testing delivered strong results, marking a shift from earlier hesitation around Huawei’s Ascend 910C, Reuters reported on Friday, citing sources familiar with the matter. The improved reception signals growing acceptance of domestic alternatives among China’s largest tech players.
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Huawei is gaining traction with its new 950PR chip due to improved compatibility with Nvidia’s CUDA ecosystem and faster performance. The company began sending samples in January and plans to start mass production soon, targeting around 750,000 units in 2026, with broader shipments expected in the second half of the year.
U.S. restrictions on advanced Nvidia chips are creating an opening for Huawei and other local players, while China accelerates efforts to build its own semiconductor capacity.
Companies such as Semiconductor Manufacturing International Corporation and Hua Hong Semiconductor Limited are expanding advanced chip production, aiming to significantly increase output despite equipment constraints.
At the same time, JPMorgan analyst Harlan Sur said Nvidia still holds significant upside if export approvals improve, estimating that every 100,000 H200…
