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Tech war: China advocates use of local AI chips over those from US powerhouse Nvidia

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AI chip users on the mainland have been informally advised to prioritise local alternatives, including those from Huawei, sources say

Chinese authorities have informally advised local companies to use domestic-made artificial intelligence (AI) chips over those from Nvidia, according to two sources familiar with the matter, as alternative suppliers on the mainland look to catch up with the US tech giant.

While there is no official ban on Nvidia’s China-tailored H20 graphics processing unit (GPU), the sources said mainland AI chip users have been informed to prioritise deployment of local alternatives, including those developed by Huawei Technologies.

A third source said H20 orders made by mainland enterprises had not been restricted as of August.

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Reports about China’s tacit rules against the American chip design firm first emerged in May, when US tech media The Information reported that regulators had asked local companies to cut back purchases of Nvidia chips and buy more from domestic suppliers like Huawei. A Bloomberg report last week said that China has called on local buyers to stay away from Nvidia.

The country’s Ministry of Industry and Information Technology, which oversees the domestic semiconductor and AI sectors, has not made any public announcement regarding that matter. The agency did not reply to a request for comment.

Nvidia did not also respond to a request for comment on the reported China restrictions.

The lack of any official confirmation about the matter somehow reflects the highly sensitive nature of the world’s AI chip market, which Taiwan Semiconductor Manufacturing Co chief executive Hsu Ming-chi has projected to grow annually at a much higher rate than the overall semiconductor industry.

When asked about his views on US trade restrictions on China, Nvidia chief executive Jensen Huang told American media in Washington on September 28 that the US government is “doing a wonderful job” in finding the right balance between controls and exporting American technology to the world.

“It is really terrific that the world is built on American standards,” Huang said, “Nvidia is an American company and our government and administration would love to see us succeed.”

Nvidia’s H20 remains popular among users in China, despite its reduced capacity to comply with US sanctions. Sales of the tailor-made chip have steadily picked up since its release earlier this year, as demand from large Chinese cloud services providers enabled them to access Nvidia’s technical support and maintenance services.

Nvidia is expected to deliver more than 1 million H20 GPUs in China this year, racking up US$12 billion in sales.

State-owned China Telecom is a major user of domestic-made artificial intelligence chips. Photo: Shutterstock

 

Still, adoption of alternative Chinese-made AI chips is growing.

State-owned carrier China Telecom, for example, said in a statement on September 28 that it has developed two large language models – the technology behind generative AI applications like ChatGPT – that were trained entirely on locally produced AI chips. While it did not identify the local supplier, China Telecom has a track record of partnering with Huawei.

A week earlier, Huawei had started offering samples of its Ascend 910C processor to large Chinese server companies for hardware testing and configuration, according to a South China Morning Post report. That put the company a step closer to the commercial roll-out of its upgraded version of the 910B, which is on par with Nvidia’s popular A100 chips.

Nvidia was initially barred from selling its A100 and H100 GPUs – two of the most in-demand chips for training and running AI models – to clients in China in August 2022. It later modified those chips to create the A800 and H800 to get around those restrictions, which Washington barred from being exported to China under tightened curbs announced last October.

Nvidia has since developed the H20, L20 and L2 GPUs to maintain its market share in China. Despite several rounds of US restrictions, Nvidia said China was its third-largest market in its financial year ended January 28.

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This article originally appeared on the South China Morning Post (www.scmp.com), the leading news media reporting on China and Asia.

Politics

Fubara To Contest Rivers Governorship Seat Under NDC

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A Rivers State politician, Blessing Fubara, has declared his intention to contest the 2027 governorship election in Rivers State under the platform of the Nigeria Democratic Congress.

The politician has already obtained both the nomination and expression of interest forms needed to participate in the governorship race ahead of the 2027 election.

Blessing Fubara shares the same surname and local government area with the current Rivers State Governor, Siminalayi Fubara.

Both men are from Opobo/Nkoro Local Government Area. However, there has been no confirmation that they are family members.

The Chairman of the NDC in Rivers State, Success Jack, confirmed that Blessing Fubara is among those seeking the party’s governorship ticket.

He also stated that he could not confirm whether the governorship aspirant is related to Governor Siminalayi Fubara.

According to him, the party is preparing seriously for the 2027 general elections and hopes to win not only the governorship seat but other elective positions in Rivers State.

The development comes weeks after Blessing Fubara left the All Progressives Congress and joined the NDC.

Following his defection in Abuja, he was received by former Bayelsa State Governor, Seriake Dickson, alongside other leaders and members of the party.

After joining the NDC, Blessing Fubara said his decision was taken for the interest of Rivers people.

He also stated that the future of the state must be protected ahead of the next general election, expressing confidence that the state would experience positive changes after the 2027 polls.

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Desmond Elliot Withdraws from APC Lagos Assembly Primaries, Cites Intimidation

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Surulere I lawmaker Desmond Elliot has withdrawn from the All Progressives Congress Lagos House of Assembly primaries, citing intimidation across multiple zones.

In a viral video posted online, the lawmaker said he was stepping out of the race despite seeking re-election under the APC. He alleged that his supporters faced intimidation during the process in several parts of the constituency.

Elliot’s decision came as the primaries held across Lagos on Tuesday. Chief of Staff to the President Femi Gbajabiamila, who represents Surulere Federal Constituency, praised the conduct of the exercise in Surulere, describing it as peaceful.

The withdrawal narrows the contest for the APC ticket in Surulere I ahead of the 2027 general election. Party officials in Lagos have not yet responded to Elliot’s claims, and the APC state chapter has not announced whether the primary in the constituency will proceed with other aspirants.

Elliot has represented Surulere I in the Lagos State House of Assembly since 2015.

 

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Politics

Political Shockwave in Rivers as Fubara Pulls Out of APC Governorship Race, Backs Party’s Candidate

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Rivers State Governor, Siminalayi Fubara, has officially withdrawn from the All Progressives Congress (APC) governorship primaries scheduled to take place on Thursday, a development that has stirred fresh political conversations across the state.

The governor announced his decision in a personally signed statement titled “My Decision to Withdraw from the Rivers State Gubernatorial Primaries,” which was released on Wednesday night.

In the statement, Fubara explained that his withdrawal followed wide consultations with political associates, stakeholders, and supporters. He stated that the decision was taken in the overall interest of peace, unity, and stability within the APC and Rivers State at large.

According to the governor, politics should not be allowed to divide the people or create unnecessary tension within the party. He stressed that preserving unity among party members and maintaining stability in the state remain more important than personal political ambition.

Fubara further pledged his total loyalty and support to whoever eventually emerges as the APC governorship candidate, assuring party faithful that he remains committed to the success and progress of the party ahead of the next general elections.

The Rivers governor also appreciated his supporters across the state for standing by him throughout the political process. He thanked party leaders, youth groups, women supporters, and political associates who had continued to show him solidarity and encouragement.

He urged his supporters not to see his withdrawal as the end of his political journey, but rather as a decision made in the collective interest of the party and the state. He also appealed to them to remain peaceful, united, and committed to the ideals of the APC.

Political observers have described the development as one of the biggest political surprises in Rivers State in recent times, especially considering the growing speculations and intense political alignments ahead of the governorship primaries.

Analysts believe the governor’s withdrawal may reshape the political calculations within the APC and influence the direction of the party’s governorship race moving forward.

The announcement has continued to generate mixed reactions from political stakeholders and residents across Rivers State. While some supporters described the move as strategic and mature, others expressed surprise over the governor’s sudden exit from the contest.

Several party faithful, however, commended Fubara for placing party unity and stability above personal ambition, noting that his decision may help reduce internal tensions and strengthen the APC ahead of the elections.

The development has also intensified attention on the remaining aspirants contesting for the APC governorship ticket, as consultations and political meetings continue ahead of the primary election.

Many observers believe the governor’s endorsement of the eventual APC candidate could play a major role in shaping the outcome of the party’s governorship battle and future political structure in the state.

As political activities continue to gather momentum in Rivers State, all eyes are now on the APC primaries and the next phase of political developments expected to unfold in the coming days.

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