Huawei is making headlines with allegations of luring talent away from NVIDIA in China. This claim comes from NVIDIA’s Chief Scientist, who noted that several former NVIDIA engineers have transitioned to the Chinese tech giant.
In response to US restrictions, NVIDIA’s position in China has become precarious. This vulnerability has led CEO Jensen Huang to voice concerns over the sanctions put in place by the previous US administration. Meanwhile, Huawei is upping its game, particularly in the AI arena, driving forward with chip and software development. This push has elevated them as a formidable competitor to NVIDIA, a fact not lost on Huang.
Bill Dally, NVIDIA’s Chief Scientist, highlights that the US ban on the H20 AI accelerator has inadvertently provided Chinese companies an opportunity to expand, particularly in hiring top-tier AI talent. In 2019, China accounted for less than one-third of global AI researchers. Now, they comprise a significant 50%.
Huawei has reportedly built a robust team of AI researchers, many of whom were formerly with NVIDIA. These engineers are said to be developing software for Huawei, strengthening its position in the market. NVIDIA’s significance in China largely stems from its sophisticated software ecosystem, particularly CUDA, which is crucial for Chinese tech firms. Although Huawei does have its own alternative, CANN, it doesn’t yet match CUDA’s performance.
Dally also pointed out that while Huawei’s hardware technology trails behind NVIDIA, the landscape shifts when considering NVIDIA’s contributions to China. Huawei’s Ascend chips, such as the 910C and 910B, are becoming preferred choices for domestic companies due to their availability and freedom from geopolitical risks. As NVIDIA reconsiders its market strategy in China, Huawei seizes the opportunity to expand its market share, much to Huang’s discontent.
