Huawei is expanding its AI ambitions with its Ascend processors, positioning them as a domestic alternative to Nvidia chips in China. The company is reportedly developing proprietary interconnect technology to link processors into powerful AI clusters, helping it work around hardware restrictions imposed by U.S. sanctions and grow its AI computing business.

Earlier reports said some Huawei devices contained memory chips from South Korean firms. More recent information suggests Huawei is developing its own high-bandwidth memory (HBM) for newer Ascend processors, including the Ascend 950 series. The move points to a push to build a more self-sufficient supply chain for critical AI components.