Chinese firms invest big in Nvidia GPUs

China's internet giants are rapidly acquiring Nvidia GPUs amid increased sanctions by the US, emphasizing the crucial role of these GPUs in developing AI systems.

US-China Tech Tensions:

The US government is pushing American tech firms to reduce exports of advanced computing tech to China.

China promises to retaliate, and Chinese companies are heavily investing in Nvidia GPUs.

Large GPU Orders:

Companies like Alibaba, Baidu, ByteDance, and Tencent have ordered 100,000 Nvidia A800 GPUs, totaling around $1 billion.

The A800 GPU is a modified version of Nvidia's Ampere-based A100, designed specifically for Chinese clients after US restrictions.

These companies have also placed further Nvidia GPU orders worth another $4 billion for delivery next year, though specific models remain undisclosed.

Significance of GPUs for AI:

Baidu, a leading AI and internet company in China, highlights the importance of these GPUs for training new large language models (LLM).

Without access to Nvidia's GPUs, Chinese firms would struggle to develop or enhance their AI systems.

Baidu's recent AI projects, such as "Ernie Bot," underline the significance of these GPUs in contemporary AI advancements.

US Restrictions and Responses:

US officials are considering even tighter restrictions on AI tech exports to China.

Despite the sanctions, US companies like Intel and AMD are creating specific AI chips tailored for the Chinese market, in compliance with the limitations.