At the World AI Conference in Shanghai, Huawei Cloud CEO Zhang Ping'an addressed concerns about China's capability to lead in AI amidst a shortage of advanced AI chips.

Despite the U.S. imposing strict bans on AI chip sales to China, including from major providers like Nvidia (NASDAQ:NVDA), Zhang argued that relying solely on the most advanced chips is not the sole foundation for AI infrastructure.

He emphasized the need for innovation beyond just advanced chip technology to maintain leadership in AI.

Zhang's remarks come as Huawei, which has been significantly affected by the U.S. Entity List restrictions, strives to circumvent these challenges.

The company has developed its own AI chip, Ascend, which is currently being utilized by numerous Chinese companies for training AI models.

Despite this progress, the Ascend chip is generally viewed as less powerful compared to Nvidia’s products, highlighting the ongoing need for advancements in local AI technologies.