Microsoft Exploring Huawei AI Chip Deal Is Bad News for NVIDIA

Microsoft and Huawei are reportedly in talks over a possible collaboration that would have the Chinese company supply AI chips for the software giant’s data centers.

While the discussions between the two sides are yet to come to a conclusion, if an agreement is reached the hardest to be hit would be NVIDIA.

At this point, NVIDIA is the sole supplier of chips for Microsoft’s data centers in the United States. Microsoft, however, is exploring additional options for China, where it is considering a potential switch to Huawei not only for the existing data centers, but also for the ones to be launched soon.

Joining forces with a local company is seen as the best way to go in this difficult market, but at the same time, a deal would become a win-win agreement.

A win-win agreement

Huawei, which is struggling to expand its AI chip business, could use the partnership with Microsoft to come to better terms with the US government. Local authorities have p... (read more)

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