A new leader is emerging in the Chinese artificial intelligence sector. And, ironically, it is happening thanks to US trade bans. Now that NVIDIA’s cutting-edge AI chip sales are limited, local companies are racing to fill the gap. Huawei is currently in the best position to take advantage of this big change, experiencing massive growth while increasing its AI market share in China.
Huawei to take 60% of the Chinese AI market in NVIDIA’s absence
NVIDIA leaving the Chinese market created a significant opening in the country. Older chip models from the American company are still available. However, they often struggle to keep up with demanding modern tasks like agentic AI. So, the Chinese AI industry had to turn to in-house solutions.
Market estimates suggest that Huawei’s share of the domestic AI market could reach a staggering 60% by the end of 2026 (via Wccftech). Without its primary global competitor in the mix, the company is on track to become the most influential AI entity in the country.
The hardware behind the surge
The momentum behind this growth is largely driven by the Ascend 950PR chip, which began mass production in March. This hardware is made to work with advanced models like DeepSeek V4. It also features up to 2 PFLOPs of performance along with 128 GB of locally produced memory.
Financial projections are equally ambitious. Based on current orders, Huawei’s revenue from AI chips could hit $12 billion in 2026. The company also has a clear roadmap for the future. There are plans for the Ascend 950DT to enter production later this year, followed by the Ascend 960 and 970 through 2028.
Navigating challenges
This domestic emergence isn’t happening in a vacuum. There are ongoing challenges regarding access to advanced manufacturing machinery. They especially affect chip production. However, despite these external pressures, the Chinese AI development does not stop.
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