Huawei's AI chips have failed to win over China's internet giants because of concerns over the hardware's performance shortcomings and the risk of violating US trade laws, according to US tech news outlet The Information.

It is understood that tests by ByteDance and BABA-W (09988.HK)  +1.700 (+1.545%)    Short selling $3.21B; Ratio 26.960%   revealed overheating issues with Huawei's Ascend 910C chip. Its software stack, Cann, was also found to be limited compared to Nvidia's (NVDA.US)      Cuda platform.

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In addition, the US Department of Commerce has warned that companies using Huawei's advanced AI chips could face severe criminal and administrative penalties, which has already led at least one Chinese data center company to cancel a tentative order for Huawei hardware.
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