Alibaba and Baidu have started using not only Nvidia’s chips but also their own domestically produced chips to develop artificial intelligence (AI) systems. This move represents strong competition for Nvidia, the U.S. company that currently leads the AI market.
According to The Information:
From this year, Alibaba has been training small AI models using its own chips. Reportedly, this new chip could compete with Nvidia’s H20, the most powerful chip that Nvidia is allowed to export to China.
Baidu, meanwhile, is testing its “Kunlun P800” chip for its AI program called “Ernie.”
Although both companies still rely on Nvidia’s chips for the most complex tasks, this step is aimed at reducing China’s dependence on foreign technology. The U.S. government has imposed restrictions on the sale of high-performance AI chips to China, forcing Chinese companies to increase domestic production.
To avoid losing the Chinese market, Nvidia offers less powerful chips. However, the company acknowledges that competition is intensifying, and Nvidia CEO Jensen Huang has stated that discussions with the U.S. government to ease these restrictions are ongoing.
A Nvidia spokesperson commented: “Competition is now undeniable. We will continue to earn developers’ trust worldwide.”
