Core Viewpoint - The article discusses the implications of the U.S. government's recent actions regarding AI chip export regulations, particularly focusing on NVIDIA and its relationship with the Trump administration, highlighting a potential shift in the regulatory landscape that could benefit U.S. chip companies while targeting Huawei specifically [4][6][21]. Group 1: NVIDIA and U.S. Government Relations - NVIDIA's CEO Jensen Huang attended a private dinner with Trump, which coincided with the announcement of a $500 billion investment in AI infrastructure in the U.S. [4][5] - Following the dinner, NVIDIA submitted an unusual request to the SEC for indefinite export licenses for its H20 chips to mainland China, indicating a complex relationship with U.S. export regulations [5][6]. - Two months later, the U.S. Department of Commerce rescinded the "AI diffusion rules," which had been set to impose strict export controls, signaling a potential easing of restrictions for U.S. chip companies [6][10]. Group 2: Impact of Rescinding "AI Diffusion Rules" - The rescission of the "AI diffusion rules" is expected to positively impact U.S. chip companies, allowing them to pursue growth opportunities in regions previously restricted, such as the Middle East [11][12]. - NVIDIA and AMD announced significant collaboration plans in the Middle East, including a $10 billion project to provide advanced chips and software solutions [11][12]. - The new regulatory environment appears to favor U.S. chip companies while simultaneously targeting Huawei, as the U.S. government explicitly warned against the use of Huawei chips in AI applications [15][21]. Group 3: Targeting Huawei - The U.S. Department of Commerce's actions are seen as a direct attack on Huawei, with specific regulations aimed at preventing the use of Huawei's Ascend chips due to their reliance on U.S. technology [15][16]. - The GP10 clause indicates that any company knowingly participating in the sale or support of Huawei's chips could face sanctions, tightening the noose around Huawei's operations [16][18]. - The article suggests that the U.S. government's strategy may inadvertently bolster U.S. chip companies like NVIDIA and AMD by limiting Huawei's capabilities in the AI sector [17][24]. Group 4: Future Considerations - The article raises concerns about the long-term implications of U.S. export controls, suggesting that overly stringent regulations could drive customers to seek alternatives, potentially undermining U.S. technological leadership [25]. - The recent changes in export policy reflect a broader strategy to maintain U.S. dominance in AI and semiconductor technology while navigating the complexities of international trade and competition [25].

Core Viewpoint - Despite being placed on a trade blacklist by the U.S. for national security reasons, Huawei's competition is intensifying, as highlighted by Nvidia's recent acknowledgment of Huawei as a competitor in its annual report for the second consecutive year [1]. Group 1: Nvidia's Position and Huawei's Growth - Nvidia has identified Huawei as a competitor in four of its five product categories, including chips, cloud services, computing, and networking products [1]. - Huawei's revenue for 2024 is projected to exceed 860 billion RMB (approximately 118.27 billion USD), marking a 22% year-over-year growth, the fastest since 2016 [1]. - Huawei's consumer division has faced significant challenges, with 2023 revenue increasing by 17% to 251.5 billion RMB, which is only half of its peak in 2020 [1]. Group 2: Huawei's AI Chip Production - Huawei has reportedly increased the yield of its latest Ascend series AI chips from 20% to nearly 40%, indicating a turnaround from losses to profitability [2]. - The company aims to further enhance the yield to 60% to meet industry standards for similar chips [2]. - For 2025, Huawei plans to produce 100,000 Ascend 910C and 300,000 Ascend 910B processors, compared to 200,000 Ascend 910B produced last year [2].