Huawei Executive Downplays Impact of AI Chip Shortage, Emphasizes Innovation

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A senior executive at Chinese technology giant Huawei (HWT.UL) addressed concerns about the potential impact of a shortage of advanced artificial intelligence (AI) chips on China’s ambitions to become a global leader in AI. Zhang Ping’an, CEO of Huawei Cloud, stressed that while the shortage poses challenges, it should not be seen as an insurmountable obstacle. Instead, he highlighted the importance of innovation in overcoming these limitations.

Zhang’s remarks were made at the World AI Conference in Shanghai, a significant three-day event that began on Thursday. His comments come in the context of increased U.S. restrictions on the export of advanced AI chips to China, including a ban on sales by companies like Nvidia (NVDA.O).

“Nobody will deny that we are facing limited computing power in China,” Zhang acknowledged. “But we cannot rely solely on having the AI chips with the advanced manufacturing process nodes as the ultimate foundation for AI infrastructure. If we believe that not having the most advanced AI chips means we will be unable to lead in AI, then we need to abandon this viewpoint,” he told attendees at the forum.

Huawei has been significantly affected by these restrictions, as the company has been placed on the U.S. Entity List, which prohibits it from purchasing advanced chips from American firms. In response, Huawei has developed its own AI chip, the Ascend, which is currently employed by numerous Chinese companies to train AI models. Despite this, the Ascend chip, like many other Chinese-made AI chips, is generally considered to be less powerful than those produced by Nvidia.

Zhang emphasized that addressing the AI chip shortage requires innovative solutions that do not solely depend on having the most advanced hardware. He pointed to the potential of cloud computing to mitigate the shortfall. “We need to focus on innovation in computing architecture,” Zhang suggested, noting that the cloud can play a critical role in compensating for the lack of high-end AI chips.

Moreover, Zhang advocated for a converged approach that integrates cloud computing, edge computing, and network technologies. This integrated strategy, he argued, can help reduce energy consumption and enhance overall efficiency. He highlighted Huawei Cloud’s leadership in providing such innovative solutions, positioning the company as a frontrunner in the industry.

The World AI Conference in Shanghai served as a platform for Zhang to reinforce Huawei’s commitment to advancing AI through technological innovation, despite the challenges posed by international trade restrictions. His speech underscored a broader strategy to leverage cloud technology and architectural innovations to maintain China’s trajectory towards becoming a leading AI powerhouse.

Zhang’s vision reflects a pragmatic approach to navigating the complexities of global tech competition. By emphasizing innovation and integration across various technological domains, Huawei aims to sustain its growth and leadership in the AI sector, even in the face of significant external challenges. This strategic direction not only addresses the current limitations but also sets a foundation for sustainable advancement in artificial intelligence.