Chinese technology giant Huawei is poised to challenge Nvidia, a prominent leader in the semiconductor industry, with the development of a cutting-edge AI chip.

According to sources cited by the Wall Street Journal, Huawei is making significant strides in the development of its latest Ascend AI GPU, known as the Ascend 910D. The company is reportedly collaborating with other Chinese firms to identify potential test partners, with the aim of creating a chip that can rival Nvidia’s H100 series, which is widely utilized for training AI models.

This development comes on the heels of the U.S. government’s recent decision to impose additional restrictions on the export of specific AI chips to China. If Huawei’s efforts are successful, its new chip could potentially fill the gap in the Chinese AI market created by the tightened export controls in the U.S.

TechCrunch has contacted Huawei for a statement and will provide an update if a response is received.