Nvidia Stock (NVDA) On Red Alert as Chinese Heavyweight Huawei Unveils ‘Nuclear Level’ Rival System
U.S. semiconductor giant Nvidia (NVDA) saw its shares plummet today as Chinese rival Huawei unveiled new AI infrastructure that can rival its computing power.
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According to a report in the South China Morning Post Huawei Technologies has introduced the CloudMatrix 384 Supernode which is being described by Huawei insiders as a “nuclear-level” product that matches Nvidia’s NVL72 system in alleviating computing bottlenecks for AI data centres.
Nvidia’s NVL72, launched last March, features a 72-graphics processing unit (GPU) NVLink domain that functions as a single, powerful GPU, enabling real-time inference for trillion-parameter large language models (LLMs) at speeds 30 times faster than previous generations.
The new Huawei system can achieve 300 petaflops of computing power at present. That compares with the 180 petaflops offered by the NVL72.
The wonderfully named petaflops is not some mop-topped band from the 60s but simply a unit which measures computing speed and floating-point operations per second.
China on the AI March
It is understood that Huawei is testing and deploying the new system in its Wuhu data centres. It is using supernodes which have more bandwidth, storage and memory over its alternatives and can increase the training of large language models.
Nvidia’s share price was not only rattled by this development but also the restrictions placed on its H20 chips to China.
Analysts believe this will only benefit domestic chipmakers such as Huawei. “U.S. regulators are effectively pushing Nvidia’s Chinese customers toward Huawei’s AI chips,” said Nori Chiou, investment director at Singapore-based White Oak Capital Partners, as reported by Reuters. “Huawei’s chip design and software capabilities are likely to advance quickly as it gains more customers and development experience.”
It is another fascinating development in the ever-evolving AI race between the U.S. and China.
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