China’s leading internet companies, including Baidu, ByteDance, Tencent, and Alibaba, are eagerly investing in high-performance Nvidia chips essential for the development of generative artificial intelligence (AI) systems. According to the Financial Times, these companies have collectively placed orders worth $5 billion. The orders include the acquisition of 100,000 A800 processors from Nvidia, amounting to $1 billion, with delivery scheduled for this year. Additionally, they have purchased an additional $4 billion worth of graphics processing units, which are set to be delivered in 2024.
This development comes as a result of export control rules imposed by the US government. In response to these regulations, Nvidia introduced the A800 processor in China to comply with export controls. Previously, US officials had forbidden the export of Nvidia’s top computing chips for AI-related work in China. However, with the introduction of the A800 processor, the Chinese groups can fulfill their AI requirements while adhering to the rules.
This news coincides with President Joe Biden’s signing of an executive order that restricts certain US investments in sensitive technologies in China. The executive order also mandates government notification of funding in other tech sectors. These measures aim to safeguard US interests and protect sensitive technologies.
In a statement earlier this year, Nvidia’s finance chief expressed concern that restrictions on exporting AI chips to China could permanently hinder opportunities for the US industry. Nevertheless, the company does not anticipate an immediate material impact. Nvidia declined to provide further comments on the matter, while Baidu, ByteDance, Tencent, and Alibaba did not respond to Reuters’ requests for comment.
In other related news, Baidu has recently established a $145 million venture capital AI fund, demonstrating their commitment to this rapidly growing field. Additionally, China is utilizing AI software to enhance its surveillance capabilities, further indicating the country’s investment and progress in this domain.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
