Nvidia Exits Chinese AI Chip Market, Setting Stage for Huawei
Nvidia’s exit from the Chinese AI chip market in June 2025 resulted from stricter U.S. export controls, blocking its sales of powerful GPUs and the lower-grade H20 chips. This decision led to a significant loss of $2.5 billion in revenue for Nvidia, which now reports no revenue from China.
In response, Chinese chipmaker Huawei has ramped up its chip development, with plans to accelerate the release of its Ascend 960DT and Ascend 960PR chips, moving from Q4 2027 to Q1 2027 and Q3 2027, respectively. Huawei’s efforts aim to leverage the existing strong domestic demand for AI technology in China.
Huawei’s advances may pose a long-term challenge for Nvidia as the company focuses on strengthening its domestic market before considering international expansion, signaling an evolving competitive landscape in AI chips.
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