Pushing into areas like the data center could make Huawei a competitive force in new spaces:
, though its power draw will also be higher than the Nvidia chips. To accompany its hardware, Huawei will also offer customers an AI computing framework, dubbed MindSpore, which will enable simpler development, improved resource allocation, and greater adaptability.Huawei has been facing regulatory challenges that have restricted its networks business, but pushing into areas like the data center could make it a juggernaut in new spaces while also maintaining its role in existing areas.
The company's mobile business is facing a pair of potential crises: US trade restrictions could leave Huawei unable to use Qualcomm chips or Google's Android OS, and losing either would necessitate a radical transformation of its mobile business. It has prepared itself for both possibilities by improving its chipmaking capacity for smartphones and connected devices and by creating HarmonyOS to power devices should it lose access to Android.
By bringing more processes in-house, Huawei is gaining the capacity to scale those new capabilities on top of its existing lines of business. If Huawei can maintain mobile phone and device performance and sales when using its own chips while it simultaneously pivots into the related data center chip business, it could emerge from this period of heightened tension more self-sufficient and positioned to compete on new fronts as well.
There aren't other tech companies with products in the same collection of areas that straddle the consumer and enterprise spaces as Huawei. The current pressures it faces are presenting an opportunity to invest internally and in turn realize greater gains on both sides of that coin.pass to Business Insider Intelligence and gain immediate access to the Connectivity & Tech briefing, plus more than 250 other expertly researched reports.
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