STORY: Shares of Nvidia dropped nearly 6% Monday morning after sources told Reuters that rival Huawei will begin mass shipments of its advanced AI chips to Chinese customers.
Two people familiar with the matter told Reuters the shipments could begin as early as next month… and said some shipments have already been made.
Chinese companies have been scrambling to find a domestic replacement for Nvidia’s H20 chip, which the Silicon Valley giant had until recently been able to sell freely to the Chinese market.
The Trump administration, seeking to limit China’s technological development, told Nvidia this month that sales of its H20 chip would require an export license.
As a result, one tech policy consultant told Reuters that Huawei’s 910C chip will “now become the hardware of choice” for Chinese AI developers.
Huawei declined to comment on what it called speculation about shipment plans for the 910C and its capabilities.
Nvidia’s most advanced AI chips, like its flagship B200, have been banned altogether by the Trump administration from being sold to China.
This has allowed Huawei and Chinese tech startups to go after what has primarily been a market dominated by Nvidia.