Summary
- Huawei showcased its CloudMatrix 384 AI system at the WAIC in Shanghai on July 26, 2025.
- Analysts view it as a direct competitor to Nvidia’s GB200 NVL72 system, challenging Nvidia’s dominance.
- The system uses 384 Ascend 910C AI chips in a supernode design, delivering 300 PFLOPS computing power and 48TB high-bandwidth memory.
- It aims to fill China’s AI hardware gap caused by U.S. export restrictions on Nvidia chips.
- Nvidia CEO Jensen Huang acknowledged Huawei’s fast progress and called CloudMatrix 384 a strong rival.
- Dylan Patel of SemiAnalysis said Huawei’s system might exceed Nvidia’s performance in some tasks.
- Huawei shipped many Ascend 910C chips domestically, offering a local alternative to Nvidia products.
- CloudMatrix 384 has been running on Huawei's cloud since June 2025 and drew big crowds at WAIC.
- Huawei declined detailed comments about the system at the event.
- The development highlights China’s goal of AI self-sufficiency amid U.S.-China tech tensions.
China’s Huawei Technologies sparked global attention on Saturday by unveiling the CloudMatrix 384—an artificial intelligence (AI) computing system that industry experts say directly challenges Nvidia’s leadership in advanced AI hardware. Debuted at Shanghai’s World Artificial Intelligence Conference (WAIC), the high-profile launch pans out against a backdrop of persistent U.S.-China tech tensions and export bans affecting Nvidia’s products in China.
What Did Huawei Announce at the World Artificial Intelligence Conference?
At the WAIC event in Shanghai, Huawei publicly displayed its next-generation AI computing cluster named the CloudMatrix 384. As reported by Reuters, this public showcase drew a “large crowd” to the company’s booth, attesting to strong industry and media interest. Since its initial announcement in April 2025, global analysts have speculated about its significance for both domestic and international markets. The system is perceived as a direct response to the ongoing restrictions that prevent Chinese firms from accessing most of Nvidia’s advanced AI chips.
What Are the Main Features of Huawei’s CloudMatrix 384 System?
According to analysis from the South China Morning Post and SemiAnalysis, and as summarized by several international outlets, the CloudMatrix 384:
- Incorporates 384 Ascend 910C neural processing units (NPUs) and 192 Kunpeng server CPUs, bound in a “supernode” architecture.
- Provides ultra-high bandwidth and low latency interconnectivity.
- Delivers system-level performance that rivals—and on some tasks, exceeds—Nvidia’s GB200 NVL72, which contains only 72 of Nvidia’s latest B200 chips.
- Achieves up to 300 PFLOPS of processing power and 48TB of high-bandwidth memory in a single system, making it optimized for demanding AI workloads such as large language model (LLM) serving.
- Is already operational on Huawei Cloud since June, according to Huawei Cloud CEO Zhang Pingan.
How Does the CloudMatrix 384 Compete With Nvidia’s Flagship Offerings?
In an April 2025 analysis cited by Reuters, Dylan Patel of SemiAnalysis stated that, “Huawei has developed AI system capabilities that could surpass those of Nvidia”. Patel emphasized that although Nvidia’s individual chips may lead in raw power, Huawei’s innovation is in its robust multi-chip interconnect, allowing for system-level performance that outpaces Nvidia’s in certain configurations.
Nvidia CEO Jensen Huang, in an interview with Bloomberg and as echoed by Huaweicentral, acknowledged that,
“Huawei’s technology…is probably comparable to an H200. They’ve been moving quite fast. They’ve offered this new system called CloudMatrix, which scales up to even a larger system than our latest generation, Grace Blackwell”.
Huang further admitted that Huawei could now deliver solutions within China that Nvidia no longer had permission to sell under tightened U.S. export rules.
What Motivated Huawei to Develop Its Own AI Infrastructure?
As noted by Reuters, the unveiling of the CloudMatrix 384 comes at a crucial time for China’s AI sector. Shrinking access to Nvidia chips due to U.S. sanctions drove domestic companies to seek homegrown alternatives. Huawei responded proactively, ramping up the design and shipment of its Ascend series chips—the foundational components of the CloudMatrix 384 and similar high-performance AI computing systems.
Huawei has previously emphasized its “Full-Stack, All-Scenario AI Portfolio,” aiming to make China less dependent on foreign technology by controlling every layer of the stack—from chips to cloud platforms to AI frameworks such as MindSpore.
What Are Industry and Analyst Reactions?
- Dylan Patel (SemiAnalysis) in comments highlighted by Reuters on April 21: “Huawei’s new system could beat Nvidia’s performance in some configurations by leveraging aggressive system-level design and interconnect”.
- Nvidia CEO Jensen Huang told Bloomberg in May, as relayed by Huaweicentral: “Huawei’s technology is probably comparable to an H200…They’ve been moving quite fast.” Huang identified CloudMatrix as a notable example of the Chinese company’s progress.
- A recent SCMP tech report by Huawei and SiliconFlow researchers described the CloudMatrix 384 as “a specialized AI supernode purpose-built for extensive AI workloads, reshaping the foundation of AI infrastructure”.
How Is Huawei Navigating U.S. Trade Restrictions?
Multiple outlets, including Reuters and SCMP, pointed out that despite being placed on the U.S. Entity List, Huawei has pressed forward with in-house semiconductor and software innovation. The CloudMatrix project is cited as a direct testament to Huawei’s resilience and determination to capture growing domestic demand for advanced digital infrastructure.
Huawei officials at the WAIC event declined to answer detailed questions about the CloudMatrix 384, demonstrating caution around disclosures under international scrutiny.
What Are the Implications for China’s and the Global AI Supply Landscape?
With CloudMatrix 384, Huawei has firmly positioned itself as China’s most viable supplier of advanced AI chips for data centers and cloud platforms. The installation and use of the new system on Huawei Cloud were confirmed by CEO Zhang Pingan in June. Industry experts expect this to accelerate development and deployment of next-generation AI applications within China, cushioning the blow from ongoing U.S. restrictions.
As reported in the South China Morning Post, the CloudMatrix 384 “surpassed the performance of some of the world’s most prominent systems in running DeepSeek’s 671-billion-parameter R1 reasoning model”. This suggests that China may now rely less on foreign technology for foundational AI computing.
What Is Huawei’s AI Strategy Moving Forward?
Huawei’s broader AI plans are anchored in investing in research, developing a full portfolio from chips to cloud platforms, and nurturing an open AI ecosystem ready to serve everything from public and private clouds to edge and IoT devices. MindSpore, its answer to TensorFlow, is being positioned as the backbone of its AI framework strategy.
What Statements Did Key Stakeholders Make?
- Dylan Patel, founder, SemiAnalysis (as quoted by Reuters and TradingView): “Huawei now had AI system capabilities that could beat Nvidia”.
- Jensen Huang, CEO, Nvidia (interview with Bloomberg, cited by Huaweicentral): “Huawei’s technology…probably comparable to an H200. They’ve been moving quite fast”.
- Zhang Pingan, CEO, Huawei Cloud (commented in June, as per Reuters and Yahoo Finance): Confirmed CloudMatrix 384 operational status on Huawei’s cloud platform.
The unveiling of Huawei's CloudMatrix 384 is a landmark moment in the ongoing global race for AI infrastructure. By demonstrating a system that can challenge Nvidia’s top products and by scaling to meet domestic and international AI workloads, Huawei cements itself as not just a survivor of U.S. sanctions but as an active leader in next-generation computing. The coming months will reveal how this shift alters the competitive tech landscape for both Chinese and global enterprises.