China's Huawei seeks to retire at AI Supremacy in Silicon Valley
China's Huawei seeks to retire at AI Supremacy in Silicon Valley
SHANGHAI: Huawei Technologies Co. introduced two new computer chips to boost artificial intelligence applications, marking the first big push by the Chinese telecommunications giant towards high-end technology dominated by US chip giants.
Huawei's Ascend semiconductor line includes a chip that installs on servers and performs complex AI tasks as programming algorithms, as well as a second chip for more routine functions in smartphones and other devices.
With the AI chips, Huawei, the world's largest manufacturer of telecommunications equipment and a leading provider of smartphones, is challenging US companies like
Nvidia
Corp.
, Intel Inc. and
Qualcomm
Inc.
The new components align with China's broader efforts to reduce its reliance on advanced technologies from the United States and develop such products in the country. Under the Beijing Made in China 2025 development plan, Semiconductors and AI have emerged as key areas. That the authorities want to develop at home.
"The power of computing is the basis of artificial intelligence," said Eric Xu, president of Huawei, at a conference in Shanghai on Wednesday. "We need to provide more abundant and affordable computing power."
Other Chinese companies are also investing resources in the development of AI chips, which generally present unique designs optimized to process large amounts of data at once. Last month, e-commerce giant Alibaba Holdings Ltd. announced plans to launch an AI chip next year, while Chinese companies such as Bitmain Technologies Ltd and Cambricon Technologies Corp. are also working on such components.
Huawei already manufactures an AI-enabled chip for its smartphones under its Kirin brand. The company is likely to find a ready market for the new components in its local Chinese market, but will face challenges in overcoming rivals in other parts of the world, said Mo Jia, an analyst with technology consultancy Canalys.
"Huawei is likely to use a lower-priced revenue strategy similar to its infrastructure or server business" to enter the market, Jia said. "In the future, I believe that the Huawei IA market will be mainly in the Chinese market."
Currently, the market for powerful chips capable of advanced AI processes such as deep learning is led by American companies such as Nvidia, based in Santa Clara, California. Google also offers a similar chip called a tensor processing unit, while companies like Qualcomm manufacture AI chips embedded in the devices.
However, unlike chip makers, Huawei will not sell chips directly to customers, Xu said. Instead, the chips will be sold as part of servers, modules and through their existing cloud computing business to Huawei customers, he said.
AI's effort follows Huawei's success in its mobile phone business, which earlier this year surpassed
Apple
Inc.
as the second global seller of smartphones after Samsung Technologies Co.
At the same time, Huawei is holding more scrutiny this year from US authorities. UU., Where your telecommunications equipment has been banned due to security concerns. Such fears led Australia to prevent Huawei from launching its fifth generation wireless launch, while officials in Japan are studying similar moves. Huawei has said for a long time that it is not a security threat and that it is owned by its employees and operates independently of Beijing.
Write to Dan Strumpf in daniel.strumpf@wsj.com
.
.
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