Huawei's AI chips face performance issues in China

Huawei's Ascend AI chips are gaining traction in China as an alternative to Nvidia, following U.S. export restrictions. However, users report performance issues, including software bugs and frequent crashes. Huawei has increased Ascend chip prices by 20-30% and is facing supply constraints. Despite these challenges, the company reported a 34% revenue increase in the first half of 2024, with over 50 foundational models trained on its chips.