Chinese technology giant Huawei is forecasting a significant surge in its artificial intelligence chip business, with revenues expected to climb by more than 60% in 2024, according to a Financial Times report published Friday.
The telecommunications company anticipates its chip division will generate approximately $12 billion this year, representing a substantial increase from the $7.5 billion recorded in 2023, sources told the Financial Times. This projection is based on orders the company has already secured.
Much of the growth stems from strong interest in Huawei’s newest Ascend processor model, the 950PR, which began large-scale manufacturing in March. The majority of this year’s orders have been for this latest processor, according to the report. Additionally, Huawei plans to introduce an enhanced version called the 950DT during the final quarter of the year.
The surge in demand appears to be driven primarily by Chinese companies seeking domestic alternatives for their AI computing needs. Reuters noted it was unable to independently confirm the Financial Times report.
