Investing.com-- Huawei has started delivering its advanced artificial intelligence (AI) chip "cluster", CloudMatrix 384, to Chinese customers seeking alternatives to Nvidia (NASDAQ: NVDA ) amid tightening U.S. export restrictions, the Financial Times reported on Wednesday, citing people with knowledge of the matter

The Chinese tech giant has sold more than 10 sets of these systems, which link Huawei’s 384 Ascend 910C processors to boost computing power, the report said.

Early recipients include data centers serving Chinese technology firms, the FT reported.

CloudMatrix 384 is positioned as a domestic replacement for Nvidia’s NVL72 cluster, which is widely used by US tech giants, and consists of 72 of its GB200 chips, the report said.

Earlier this month, Washington placed Nvidia’s H20 chip—the most advanced it could sell in China without a license—on its restricted export list. Nvidia said the move would lead to a $5.5 billion charge in the first quarter.

Huawei claims its system offers 67% higher compute performance and over three times the memory capacity, according to an internal presentation seen by the FT.

Despite performance advantages, CloudMatrix consumes significantly more power and requires greater operational manpower, the report said.

Still, Huawei’s offering is gaining traction as Chinese firms seek alternatives to U.S. chips, it added.