(Shenzhen Comprehensive News) U.S. media reported that Chinese technology giant Huawei is about to launch a new chip for artificial intelligence to overcome US sanctions and challenge Nvidia in the Chinese market.

The Wall Street Journal Tuesday (August 13) quoted people familiar with the matter that Huawei was testing a latest processor called "Shengteng 910C" in recent weeks.Huawei told potential customers that this processor can launch H100 chips last year, which can be sold directly in China.

People familiar with the matter said that companies such as bumper and Baidu and China Mobile have conducted preliminary discussions on purchasing Shengteng 910C.The preliminary negotiations between Huawei and potential customers show that the order may exceed 70,000, with a total value of about 2 billion US dollars (S $ 2.6 billion). Huawei's goal is to start shipping as soon as October this year.

However, people familiar with the matter also pointed out that Huawei's current chip is still facing the problem of delay in production.The company may still be sanctioned by the United States, making it unable to use the latest storage chips in manufacturing equipment and artificial intelligence hardware.

Huawei has been included in the entity list of the US Department of Commerce since 2019, which shows that Washington believes that the company has pose a threat to US national security.This prevented Huawei from using factory manufacturing chips in Taiwan and other places, and also hindered Huawei to obtain key components and manufacturing equipment.

According to Reuters, U.S. regulators prevented Nvida from selling advanced chips including H100 on the grounds of national security on the grounds of national security.Nvidia subsequently launched three chips specially customized for China, including the most watched H20 chip.However, the computing power of H20 is significantly limited compared with the H100 chip.

Huawei has not responded to the Wall Street Journal and Reuters' comment requests.