Core Viewpoint - Chinese tech companies are rapidly seeking alternatives to Nvidia due to tightened export controls from Washington, particularly following the H20 chip ban [2][4]. Group 1: Market Dynamics - Major Chinese tech giants like Alibaba, Tencent, and Baidu are testing alternatives to Nvidia's AI chips, such as Huawei's Ascend 920 AI chip, which was launched shortly after the H20 ban [2]. - Industry executives indicate that there is sufficient inventory of Nvidia AI chips to support AI development until early 2026, but many are actively searching for alternatives due to uncertainties surrounding the performance of H20's replacement B20 and AMD's Radeon AI PRO R9700 [2]. Group 2: Technological Advancements - Although Chinese AI chips still lag behind Nvidia's top products, significant progress has been made in R&D, with some companies now able to produce chips that are only one generation behind [4]. - The export controls have prompted innovation among local chip manufacturers, as they recognize the risks of relying solely on US-made chips for AI processing capabilities [4]. Group 3: Challenges and Future Outlook - The primary challenge in deploying alternative AI chips lies in the need to migrate systems from Nvidia hardware, which will incur substantial costs and require extensive support from software and hardware engineers [4]. - Once the migration is completed, subsequent deployments are expected to be easier, and the demand for local AI chip development will continue to grow, potentially threatening Nvidia's global dominance in AI technology [4].