China's Huawei Unveils AI Supercluster in Direct Challenge to Nvidia

Huawei says it is ready to launch what it calls the world's most powerful AI system, stepping up competition with Nvidia Corp. (NVDA, Financials) just as U.S. restrictions tighten China's access to advanced chips.

The new Atlas 950 SuperCluster, powered by Huawei's Ascend processors, is slated for release next year and will run on more than 500,000 chips. The company claims it will outpace Nvidia's planned NVL144 system and even Elon Musk's xAI Colossus supercomputer.

The move comes as Beijing urges self-reliance in semiconductors and expands an antitrust probe into Nvidia. Reports also suggest Chinese firms have been told to stop testing Nvidia's RTX Pro 6000D, sending Nvidia shares lower this week.

For investors, the question is whether Huawei's scale-first approach can chip away at Nvidia's lead in AI computing or whether U.S. export rules will keep reshaping the competitive field.