Yahoo Finance

Meanwhile, Nvidia under pressure as China's Huawei reportedly readies an AI chip after Trump's export ban for more on what this means for the AI race between the US and China. Let's get right to Yahoo Finances Dan Howley, Dan.

That's right. Nvidia kind of on its heels here when it comes to China, although I'll give a little caveat there in a second. Uh, Huawei reportedly working on a new chip called the Ascend 910D. Uh, it's the follow-up to the Ascend 910 B and C. This according to the Wall Street Journal. Uh, the the chip is supposedly supposed to be more advanced than Nvidia's H100. Now, the H100, not exactly Nvidia's latest and greatest chip, a few years old at this point. That's from the Hopper generation. Uh, they're currently in Blackwell and they already announced Blackwell Ultra and then, uh, the chips after that. Uh, but the important thing here though is that it proves that Huawei, if if these, uh, you know, estimates are are correct and that it actually does surpass the H100, it would prove that Huawei is pushing forward with their own capabilities without the help of US technologies, uh, like Nvidia's. And so, uh, the caveat being here that Nvidia really doesn't sell much in China and can't sell much in China anymore now that, uh, the White House has basically said, look, the H20 that you built specifically for the Chinese market, uh, it it's going to be under export restrictions. Uh, and so more or less it's it's banned from being sold. Uh, China did make up a good chunk of revenue for Nvidia in its prior quarter. And now they're saying they're going to have to pay back 5.5 billion as far as charges go related to some of the chips that they were expected to ship out to the country. But it it this chip is important for Huawei, but it doesn't say that the Nvidia is falling behind. Uh, it's showing that there's another alternative available to Chinese market customers. Uh, and so this kind of back and forth between the US over which is going to win the the AI wars kind of continues on now. Uh, the US was trying to push China away, uh, kind of leaving them, uh, in in the dark as far as the technologies go, so that the US could maintain its its stance as the the number one AI power. But China clearly showing that it's not going to kind of sit back and let that happen.

Here's a broader policy question for you, my friend, which is, so the Chinese government would obviously like to be a global tech powerhouse. The US government would prefer they not be. And so we impose these export controls which which some believe, listen, the CCP is an adversary and we've got to try to move these levers. Um, others argue what it's doing, perhaps, is encouraging Chinese companies like the Huaweis to get more creative, to get more dynamic and innovative. I'm I'm just curious your your thoughts on that.

Yeah, that seems to be the the the takeaway that uh, has kind of become the the go-to since uh, we've seen deep seek R1 and V3 models that were developed using Nvidia's technology, earlier technology, the H20s. Uh, you know, those chips are not top of the line, top of the line, but they managed to produce models that uh, were up there with what Open AI has to offer built using the the latest and greatest. So it really is a matter of, okay, they're going to find a way of uh, researchers in China that they're, you know, obviously, they're motivated to make, you know, the latest and greatest models as well, uh, prove that they can be as much of a powerhouse in AI as the US. And that appears to be exactly, uh, what they're doing, uh, and, you know, regardless of uh, what the US tries to do with stopping different types of technologies from flowing there, uh, it seems to be that China will do what it has to do to be an AI powerhouse.

Dan, great to see you. Thank you, my friend.