Chinese artificial intelligence (AI) firm Baidu has reportedly ordered AI chips from Huawei, signaling a growing acceptance of the Chinese tech giant’s products as an alternative to Nvidia. According to two anonymous sources, Baidu placed the order in August, ahead of anticipated new US government restrictions on chip exports to China. The order included 1,600 of Huawei’s Ascend AI chips, developed as an alternative to Nvidia’s A100 chip, for 200 servers. By October, Huawei had delivered around 60% of the order to Baidu. The total value of the order is estimated to be approximately CNY 450 million ($61.83 million). While the order is small compared to what Chinese tech firms historically order from Nvidia, it is seen as significant in showing a shift away from the US company. Baidu, Tencent, and Alibaba have long been clients of Nvidia, but Baidu was not previously known to be a customer of Huawei’s AI chips. Despite Huawei’s Ascend chips being considered inferior to Nvidia’s in terms of performance, they are seen as the most advanced domestic option in China. This order indicates Baidu’s preparation for a future where it may no longer be able to purchase from Nvidia. Baidu and Huawei have not responded to requests for comment, and Nvidia declined to comment. Analysts predict that Huawei’s opportunities in its $7 billion home market will increase following US restrictions, as the Chinese tech giant continues to make progress in chip development.
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