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China's internet giants order $5 billion of Nvidia chips to power AI ambitions: Report

China's internet giants order $5 billion of Nvidia chips to power AI ambitions: Report

The Hindu
Thursday, August 10, 2023 4:47 AM GMT

China’s internet giants are rushing to acquire Nvidia chips vital for building generative AI systems.

China's internet giants are rushing to acquire high-performance Nvidia chips vital for building generative artificial intelligence systems, making orders worth $5 billion, the Financial Times reported on Wednesday.

Baidu, TikTok-owner ByteDance, Tencent and Alibaba have made orders worth $1 billion to acquire about 100,000 A800 processors from the U.S. chipmaker to be delivered this year, the FT reported, citing multiple people familiar with the matter.

The Chinese groups had also purchased a further $4 billion worth of graphics processing units to be delivered in 2024, according to the report.

The Biden administration last October issued a sweeping set of rules designed to freeze China's semiconductor industry in place while the U.S. pours billions of dollars in subsidies into its chip industry.

(For top technology news of the day, subscribe to our tech newsletter Today’s Cache)

Nvidia offers the A800 processor in China to meet export control rules after U.S. officials asked the company to stop exporting its two top computing chips to the country for AI-related work.

The FT report comes as President Biden on Wednesday signed an executive order that would narrowly prohibit certain U.S. investments in sensitive technology in China and require government notification of funding in other tech sectors.

Read full story on The Hindu
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