Huawei's Journey from Telecoms to AI Leadership in China

The Huawei booth at the Mobile World Congress in Barcelona, 2025. Arjun Kharpal | CNBC

Despite facing challenges from U.S. trade restrictions, Huawei has emerged as a strong competitor in China's AI landscape. The company has diversified its focus over the years, expanding into various sectors such as smart cars, operating systems, and advanced technologies like semiconductors and data centers. Huawei has been praised for its competence in different complex sectors, making it a formidable player in the technology industry.

Nvidia CEO Jensen Huang has acknowledged Huawei as a significant technology company, warning that it could replace Nvidia in China if U.S. export restrictions continue. While Nvidia remains a leader in AI processors, Huawei has shown its capabilities in various areas, proving its resilience and adaptability.

Huawei, founded in 1987 by Ren Zhengfei, started as a small telephone switch distributor and grew into a global telecoms player. Despite facing scrutiny from governments like the U.S., Huawei became a leader in 5G technology and smartphone manufacturing. The company's success led to increased attention and challenges, including being placed on a U.S. trade blacklist in 2019.

Despite setbacks from export controls and sanctions, Huawei continued to innovate, launching its Ascend 910 AI processing chip and expanding its AI portfolio. The company's resilience in the face of challenges has positioned it as a key player in China's AI development.

In recent years, Huawei has made strides in developing advanced chips and AI systems, such as the AI CloudMatrix 384. The company aims to redefine AI infrastructure and provide developers with the tools they need for large-scale models. Huawei's Ascend Ecosystem Strategy encompasses a wide range of AI technologies, positioning the company as a major player in the global AI race.

According to the source: CNBC.