In the race between the U.S. and China to develop artificial intelligence, Chinese companies like Huawei have overtaken global industry leaders like Nvidia in their home market. Controls imposed by Washington on exports of advanced technology initially stalled sales of Nvidia's advanced H200 AI chips in China. By the time U.S. President Donald Trump agreed to their sale, Beijing had switched to encouraging use of domestically designed chips made by local rivals led by Huawei. Nvidia CEO Jensen Huang acknowledged the U.S. has lost its edge in China's advanced AI chips market, stating that before export control banned Nvidia out of China, it had about 95% market share. A report by Bernstein estimated that Nvidia had about a 40% market share in China's AI chips market in 2025, roughly matched by Huawei. Bernstein has predicted Nvidia's market share will shrink to around 8% this year, while Huawei's will likely grow to about 50%. By some measures, Huawei’s most advanced commercial AI chips, the Ascend 950 series, can be seen as roughly comparable to Nvidia’s H200, according to industry analysts.