Customer testing of Huawei’s new AI chip, designed to challenge Nvidia

in the China market, has gone well and big tech giants, including ByteDance and Alibaba plan to place orders, two people familiar with the matter said.

The development marks a milestone for Huawei.

Despite a government campaign to encourage the use of domestic semiconductors, the Shenzhen-based firm struggled to persuade big tech firms in the private sector to adopt its current flagship chip, the Ascend 910C, in large quantities, industry sources have previously said.

This time around, tech firms intend to use the new 950PR more extensively, much happier now that the chip is more compatible with Nvidia’s CUDA software system and has better response speeds, said the two people and a third person with knowledge of those plans.