Chinese technology companies are reluctant to purchase Huawei chips due to overheating and CUDA ecosystem issues.

Chinese Tech Companies Reluctant to Purchase Huawei Chips Due to Overheating and CUDA Ecosystem Issues

A combination of factors has led to considerable inertia in the market for Huawei's 910C GPU. Chinese tech giants such as ByteDance, Alibaba, and Tencent have yet to place large - scale orders for Huawei's AI chips. Lacking a technology - driven growth momentum in orders, these GPUs are currently mainly targeted at large Chinese state - owned enterprises and local governments. Firstly, many Chinese tech giants have invested heavily in the CUDA ecosystem, and they expect Huawei to adapt to their platforms rather than the other way around. Secondly, most large Chinese tech companies are Huawei's competitors, and they are still reluctant to fully embrace the products of a rival. Thirdly, Huawei's Ascend 910C chip has a periodic overheating problem. Fourthly, over the years, many of China's largest tech companies have stocked up on a large number of NVIDIA's GPUs, and these inventories have not been exhausted yet. Fifthly, in May, the US Department of Commerce issued a comprehensive guidance stating that any company using these chips without prior authorization may be considered in violation of US export controls, which has had a significant negative impact on Huawei's chips.

—— The Information

via Wind Vane Reference Express - Telegram Channel