China builds major new AI cluster, ditches Nvidia for Huawei chips

China has switched on one of its largest artificial intelligence computing systems yet, with Shenzhen bringing a 10,000-card AI cluster online, built using domestically developed chips.

According to media reports, the system is powered by advanced Huawei processors and delivers roughly 11,000 petaflops of computing power, placing it among the most powerful AI training infrastructures currently in operation.

The cluster, built on Huawei’s Ascend 910C chips, marks a major step in Beijing’s push to build a self-reliant AI ecosystem amid ongoing US export restrictions on advanced semiconductors, forcing local companies like Huawei to accelerate the development of homegrown alternatives.

While Huawei’s chips are generally considered less powerful than top-tier Nvidia GPUs, China is making up for this by using large numbers in massive clusters rather than relying on raw per-chip performance.

Local organizations are queuing up for the new cluster. Nearly 50 organizations, including AI startups, robotics firms, and research institutions, have already signed up for capacity, pushing utilization rates close to 92 percent across the facility.

The newly activated cluster builds on an earlier 3,000-petaflop installation that was already fully booked. Together, the two clusters bring Shenzhen’s total available computing power to around 14,000 petaflops.

Officials in Shenzhen have made no secret of their AI ambitions. The city aims to become a global AI hub by 2028, and is making aggressive investments in chips, storage, and optical modules.

Tech self-reliance goes global

China’s latest AI supercluster mirrors a broader shift among major economies trying to regain control over critical technology stacks. From chips to cloud infrastructure, governments have started looking at compute capacity as a strategic asset.

In Europe, concerns over reliance on American tech giants have already triggered concrete action. Policymakers have warned that companies including Amazon, Microsoft, and Google collectively control around 70% of Europe’s cloud infrastructure, raising alarms about “digital sovereignty.”

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Furthermore, the European Union is also exploring more assertive measures to secure its position in the semiconductor supply chain. Think tanks across the bloc have suggested leveraging export controls on critical chipmaking equipment, particularly from firms like the Dutch ASML, to counterbalance US dominance and protect regional interests.

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