Huawei continues to erode Nvidia's market share as China remains closed despite hopes of reopening

U.S. AI chip export controls have backfired, catalyzing China’s vertical integration of its domestic compute stack. Huawei’s Ascend 910B now partially substitutes for NVIDIA’s A100 in training workloads, spurring rapid co-development of homegrown interconnects, liquid cooling, and AI frameworks—forging a 'de-Americanized' ecosystem. Compliance burdens force NVIDIA to deploy downgraded SKUs for China, eroding margins and distorting its roadmap. In response, NVIDIA may pivot to Southeast Asian assembly or software-as-a-service models, but strategic distrust is irreversible. Within 18 months, China’s AI chip self-sufficiency will exceed 40%, cementing a bifurcated global semiconductor order: one anchored in CUDA, the other in CANN/MindSpore—with interoperability sacrificed for sovereignty.