New Delhi, June 30 -- In the race between the U.S. and China to develop artificial intelligence, the battle over hardware and computing power is heating up as Chinese companies like Huawei overtake global industry leaders like Nvidia in their home market.

Jensen Huang, the CEO of computer chip giant Nvidia, was mobbed by onlookers as he hit the streets for the "zhajiangmian" noodles while visiting Beijing during U.S. President Donald Trump's May summit with Chinese leader Xi Jinping. But his celebrity status has not translated into success in selling Nvidia's advanced chips in China.

Controls imposed by Washington on exports of advanced technology due to national security concerns initially stalled sales of Nvidia's advanced H200 AI chi...