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Huawei stand at Mobile World Congress in Barcelona, 2025.
Arjun Harpal | Cnbc
Despite the fact that they were beaten by the US trade restrictions, the Chinese telecommunications giant Huawei calmly became one of the country’s most violent competitors throughout the II landscape.
It seems that the firm based in Shenzhen is a response in Beijing to American AI Chip Darling Nvidia, but was also an early adoption of monetization of artificial intelligence models in industrial supplements.
“Huawei has been forced to move and expand its main attention for the last decade … Due to various external pressure on the company,” said Paul Trioli, a partner and senior vice president on China at the Dga-Albright Stonbridge Group.
This extension has seen that the company is involved in everything from reasonable cars and operating systems to the technology required for AI boom, such as advanced semiconductors, data centers, chips and large language models.
“No other technology company was able to be competent in such a number of different sectors with high difficulty and barriers to entry,” Triol said.
This year’s NVIDIA CEO Jensen Juan is becoming more voice calling Huawei “one of the most formidable technology Companies in the world. “He also warned that Huawei would replace Nvidia in China if Washington continues to restrict US exports to the Asian country.
Last week, Nvidia exceeded $ 4 trillion to become the most valuable company in the world. Its advanced processors and related to remain an industry standard For learning generative models and AI applications.
But this roar can be narrowed, because Huawei proves that it is not only everything but also good. Although challenging the American AI like Nvidia is a high order, the company’s history shows why it cannot be considered.
Huawei who is now hire More than 208,000 people came to more than 170 markets. Founded by ambitious entrepreneur Ren Zhengfei in 1987 from the apartment in Shenzhen, the firm began as a small phone distribution.
As he grew into a telecommunications player, he gained craving, focusing on less developed markets such as Africa, the Middle East, Russia and South America, before eventually expanded into places such as Europe.
By 2019, Huawei will be well accommodated to take advantage Global 5G deploymentbecome a leader in the market. At about this time, he also bloomed from one of the world’s largest manufacturers of smartphones and even developed smartphone chips through a subsidiary company, Hisilicon.
But Huawei’s success has also attracted more and more controlled governments outside China, especially the United States, who has often accused Huawei technology of national security threats. A Chinese company has refuted such risks.
Export control ironically pushed Juovei into the Chinese government’s weapons so that Ren Zhengfay CEO always resisted.
Floor trio
Partner and senior vice president on China in DGA-ALBRIGHT Stonebridge Group
Huawei’s business has suffered serious failure in 2019 when it was located on the US trading list without giving US companies to run a business with it.
As the impact of sanctions began, consumer business Huawei – once in the company the largest income – halved to approximately 34 billion dollars In 2021 a year earlier.
The company still managed the breakthrough on AI chip and pressed, despite additional restrictions in the US in 2020, which disabled the company from manufacturer manufacturer Chiphan Semiconductor ManuFacturing Co. a year earlier, huawei officially launched Its chip for processing AIS 910 AI as part of the “AI AI AI AI AI AI” strategy and to become the AI computing power supplier.
But the American targeting Huawei also had the effect of turning a company into a figure similar to a martyr in China, based on the attention he received in 2018 when Men Vanzhou, CEO Huaus and Daughter Reno Reno, was Arrested in Canada for alleged violations of Iran’s sanctions.
As China, the American Technology War was placed in China, and the broad improved chips’ restrictions, Huawei became a clear choice to become a national champion with a greater impetus and a state support for its AI plans.
“Export control ironically pushed Huawei into the Chinese government’s weapons so that Ren Zhengfay CEO always resisted,” Triol said. Thus, the restrictions also became “steroids” for AI equipment and Huawei software.
After the next year of decreased sales in the consumer segment, in 2023 the unit began to turn over with the exit of the smartphone, which Analysts note that contained an advanced chip Done in China.
5G chip has become a shock to many in the US, who did not expect Huawei to reach such a promotion level so fast without TSMC. Instead, Huawei collaborated with Chinese chips Smic, a company that was also blacklisted
While semiconductor analysts said the scale that Huawei and SMIC could create these chips was severely limited, Huawei nevertheless proved that he returned to the advanced game.
It was at this time that the messages began to emerge about the new CPU CPU CPU, ASCEnd 910B, and the company seeks to seize the gaps left by export control on the most advanced Nvidia chip. Mass production 910c next generation justify Already on the road.
To fill the void left Nvidia, Huawei “has made great success in repeating the efficiency of upscale graphic processors using the lower chips combinations,” said Jeffrey Tusan, head of the Techmoat Consulting.
In April, Huawei introduced its “AI CloudMatrix 384” system, which links 384 910C chips in the data center. Analysts They said that CloudMatrix is capable of surpassing the NVIDIA, GB200 NVL72, by some indicators.
Huawei doesn’t just catch up: “It’s revisiting how AI’s infrastructure works,” “ Analysts forrester said In the last month’s report about CloudMatrix.
Meanwhile, Huawei also developed its own software system “Cann” which acts as an alternative to Cuda Nvidia.
“Not only is the faster chips win. It also includes the delivery of tools that developers must create and expand large-scale models,” the Forreter report said, although the authors noted that Huawei’s products are still not integrated with other widely used tools.
While the goal of Huawei is surpassed by Nvidia as a key development in China and the US race on AI, it is important to note that chips are only one building block of AI Huawei.
Now Huawei has its own hands along the chain of artificial intelligence values: from chips to computing, to AI models and AI apps. These different AI business avenues also use other areas of the huge technology empire of the company.
In fact, the company “ICT -Infrastructure” of the company – which includes 5.5 g of cell network and AI system for industrial use – has become the largest company’s 362 billion revenue driver in 2023.
The company was deployment Its rising AI CHIPS and AI CloudMatrix 384 in its growing portfolio of AI data centers, which are managed by its cloud computing Huawei Cloud, created in 2017 to compete with similar Amazon Web -services and Oracle.
These data centers, in turn, provided training and computing capacity used by Huawei AI models in the Pangu series.
Unlike other AI AI AI models such as Openai GPT-4 or Google’s Gemini Ultra 1.0, Pangu Huawei Model is designed to support more industry Applications across Medical, financial, government, industrial and car sectors. Over the last year, Pangu is already applied in more than 20 industries – said last month.
The execution of such AI applications often involves the creation of Huawei technical staff for several months on the project site, even if it is in a remote mine coal, Jack Chan, Vice President of the Huawei’s Marketing Department Oil, Gas and Mining Business Padgersproviding digital and reasonable solutions to convert these industries, CNBC reported.
This study allowed the company in May Remove another 100 electric cars that can Autonomously transports dirt or coal Using a 5G network, AI and cloud calculations of the telecommunications company.
And this is not limited to China. Technology can “repeat on a wide scale in Central Asia, Latin America, Africa and Asia-Pacific,” Chen said.
Huawei also opened Pangu models, which states that it will help expand abroad and improve its “Ascend ecosystem strategy”, which refers to its AI products built around its ascending chips.
Speaking in front of “Squawk Box Asia” CNBC, on Thursday, Patrick Murched of Moor Insights & Strategy said he expects huawei to rise in the countries that are part of the Chinese Belt and Roads – a project of investments and development.
For five to 10 years, the company can start building a serious market share in these countries, just as it once did with its telecommunications business, he added.