Huawei's AI chips are fiercely competitive, and NVIDIA Jensen Huang shows goodwill!
Nvidia CEO Jensen Huang visited China some time ago and attended the annual conference at Nvidia's three offices in Beijing, Shanghai and Shenzhen.
At the annual meeting, Huang organized a first-class event for all employees, and what was even more interesting was that he also wore a tweed vest from the Northeast to sing and dance on stage, which brought surprises to everyone.
Why did Huang go to such lengths? In my opinion, there are at least two reasons:
1. Nvidia is doing very well in 2023, which makes Lao Huang very happy.
By 2023, Nvidia will be one of the most profitable companies in the world.
By 2023, NVIDIA's share price has increased by 200% and its market value has quadrupled to $1 billion; Nvidia has made a lot of money, and Lao Huang is naturally very happy.
2. China is a very sensitive and special market, and Lao Huang came to China to show his sincerity.
Nvidia used to have 20 to 25 percent of its total revenue from China, and with the development of AI technology, China ordered more than 700 million AI chips from Nvidia in a year.
However, the U.S. ban prevented Nvidia from selling the A100 and H100 as well as the H800 and A800, forcing Nvidia to downgrade the H20 series.
The key, however, lies in the sudden rise of Huawei's AI chips in China, with many Chinese companies now opting for Huawei's emerging AI chips, which are rumored to outperform Nvidia's A100.
Huawei's latest product, the Ascend 910B, is also said to have more than 5,000 pre-orders, and many Chinese manufacturers are planning to stop buying Nvidia's AI chips in favor of Huawei's products.
This is not a small blow to Nvidia, because if it loses Chinese customers, its revenue will drop by 20%, and the value of the Chinese market will reach 10 billion yuan.
As a result, Huang had to travel to China to organize a grand party for his employees to comfort them and make a good impression on Chinese consumers.
However, it will not be easy to gain a foothold in China, and more importantly, the United States"Chip ban"It is likely to affect Nvidia's business in China.