Huawei was poised to muscle in on Nvidia’s business in China with its new CloudMatrix 384 AI server, built using its own Ascend 910C chips. Unfortunately for Huawei, in the last week, Nvidia has modified its H20 chip to get around US export controls and plans to access the Chinese market once again. Huawei’s innovation in designing and building the CloudMatrix 384 will stand it in good stead, but for now, the Chinese vendor is still too exposed to the international supply chain and its AI system is still too power-hungry to compete with Nvidia, now that the US vendor is back on the scene. Moments after the Trump administration unexpectedly announced new rules limiting exports of Nvidia’s H20 chip…