Huawei Guns for Nvidia With Potential Microsoft AI Chip Deal in China

Microsoft and Huawei Technologies are discussing the possibility of the U.S. company using Huawei’s newly developed artificial intelligence chips for data centers in China, people familiar with the matter said.

While it is uncertain whether they will reach an agreement, a deal with Microsoft would be the Chinese company’s first step to challenge dominant AI chipmaker Nvidia. Huawei’s efforts align with the Chinese government’s policy of beefing up the country’s homegrown technologies. The U.S. government has effectively banned Huawei’s telecom technology in the U.S. but a Microsoft endorsement could help Huawei sell more chips and servers to other global customers.