As Nvidia continues to dominate the AI world with its powerful GPUs, CEO Jensen Huang’s recent praise of Huawei’s smartphones and chips adds a surprising twist to the narrative. While Nvidia is currently the most valuable publicly traded company, valued at an astounding $4.18 trillion, it faces competition from multiple corners of the tech world.
One of the most unlikely competitors is Huawei, the Chinese company that has had to navigate stringent U.S. sanctions preventing it from accessing vital U.S. technology and chip-making equipment. Despite these setbacks, Huawei has found ways to innovate and keep its product lineup relevant.
GPU chips, often associated with gaming or graphic-heavy tasks, are essential in the AI industry for their ability to handle parallel processing. This means that GPUs can process multiple tasks simultaneously, which is perfect for AI, which requires massive parallel computation. Nvidia’s dominance in the GPU market comes from its focus on AI, a sector that has exploded in recent years. With a near-monopoly in the AI GPU market, Nvidia continues to drive innovation, but it’s clear that the competition is becoming fiercer, with Huawei being one of the notable rivals.
Huawei, once the second-largest smartphone maker in the world, suffered greatly from the sanctions imposed in 2020. Unable to access the latest chips, Huawei’s smartphone division saw a significant decline. However, in 2023, the company made a remarkable comeback with the release of its Mate 60 series, powered by the 7nm Kirin 9000S chip developed in partnership with the Chinese foundry SMIC. This breakthrough allowed Huawei to bring back 5G support in its flagship devices for the first time in four years.
Despite being handicapped by U.S. sanctions, Huawei’s smartphones continue to earn admiration, even from figures like Jensen Huang. He lauds Huawei for its technological advancements, particularly in its chip designs for both AI and smartphones. Huang’s remarks reflect the high regard in which Huawei is held, despite the political tensions surrounding the company. According to Huang, “If anyone takes a close look at Huawei’s phones, they will understand the technological miracles contained therein.”
Huang has also praised Huawei for its strides in AI and self-driving technology, noting the strength of the company’s chip and system designs, as well as its software. While Huawei’s telecommunications equipment remains banned in the U.S., Huang acknowledges the company as a formidable rival, expressing admiration for its innovation. “Rivals are not enemies,” Huang says, emphasizing that competition can be respectful and beneficial for all involved.
Huawei’s ability to overcome adversity is evident in its development of a new operating system when it was placed on the U.S. Entity list in 2019. The company’s resilience was further showcased with the launch of the Mate XT, the first tri-fold phone. This constant push for innovation, despite political and technological barriers, highlights Huawei’s commitment to remaining competitive on the global stage.
While some critics continue to associate Huawei with the Chinese Communist Party (CCP) and point to ongoing legal challenges, Huang’s comments suggest that there’s more to Huawei’s story than just politics. For anyone focused on the products, it’s clear why the CEO of Nvidia respects the company’s efforts. Despite the controversies, Huawei continues to produce top-tier smartphones that are hard to ignore.