Chinese tech giant Huawei’s new CloudMatrix 384 supercomputer just outperformed NVIDIA’s platform on key metrics, delivering more than double the computing power in comparison. Compounding the bad news for NVIDIA is US export controls have blocked China’s access to its most advanced processors, further disadvantaging the American company. Mounting pressure from Washington’s tightening restrictions include the Trump administration’s latest move to ban exports of the H20 chip specifically designed for China, forcing it to write off $5.5 billion in inventory and a projected $15 billion in lost revenue.
Huawei’s platform uses 384 domestically-produced Ascend 910C chips, each delivering enormous processing power, and boasts 3.6 times the memory capacity and 2.1 times the memory bandwidth of NVIDIA’s platform. Huawei has already deployed CloudMatrix clusters in 16 provinces across China and is building a homegrown software stack that rivals NVIDIA’s programming tools, allowing China to compete in the global AI industry.
The $128 billion bet that’s reshaping global tech
The news signals a fundamental power shift that could rewrite the global tech landscape. Huawei’s estimated $128 billion valuation suggests massive untapped potential, particularly in emerging markets where US influence is waning. Those markets aren’t waiting around for American approval. Huawei has already secured lucrative data center deals in Brazil and Saudi Arabia, positioning itself to capture market share in regions increasingly wary of US technological dominance.
Perhaps most concerning for Silicon Valley is that Huawei’s breakthrough is sparking a global trend toward “sovereign AI.” The US-China rivalry is driving fresh efforts across Europe and the Middle East, creating massive new markets where both Huawei and NVIDIA are competing for influence —and where Huawei’s freedom from US export restrictions gives it an advantage.
What this means for the global AI race
Tech stock investors are getting nervous, with market analysts warning that major tech indices may see significant underperformance from US firms if the China market remains inaccessible while Chinese alternatives gain global traction. Investors are already re-evaluating their exposure to US-centric tech giants as China demonstrates that not only can it survive without American chips, but it can build its own that potentially surpasses them in critical performance metrics.
Recent testing by China’s DeepSeek AI team revealed that Huawei’s Ascend 910C chips deliver 60% of NVIDIA H100’s performance with “unexpectedly good” results. DeepSeek converted its systems from NVIDIA’s software to Huawei’s with just one line of code. If Huawei can close that remaining 40% performance gap while maintaining its cost and supply chain advantages, we’re looking at the birth of two separate AI universes. With more than 100 countries sitting on the fence between American and Chinese technological ecosystems, the next few years could determine which digital world shapes the future — and Silicon Valley’s monopoly might not survive the choice.
