According to the report, these companies have already ordered $1 billion worth of nearly 100,000 A800 processors from Nvidia, a US-based chipmaker. The delivery of these chips is expected by the end of this year. In addition, they have also placed an order for $4 billion worth of graphics processing units (GPUs), scheduled for delivery in 2024.
Chinese companies limited to Nvidia’s A800 chips
Nvidia’s A800 GPUs are a lower-performing version of the A100 chips designed specifically for data centers. The A800 chips also have slower data transfer rates compared to the A100s.
The US imposed export restrictions last year to hinder China’s technological ambitions, which might explain why Chinese tech companies are only allowed to purchase A800 chips.
The report speculates that Chinese internet companies are racing to stockpile A800 chips due to concerns that the Biden administration may impose new export restrictions. These restrictions could potentially include Nvidia’s weakened A800 chips and exacerbate the GPU shortage.
The US has already announced a ban on investment in China’s quantum computing, advanced chips, and AI sectors, set to take effect in 2024. An employee from Baidu reportedly stated, “without these Nvidia chips, we can’t pursue training for any large language model.”
Race for AI dominance among Chinese tech giants
Following the success of Microsoft-backed ChatGPT, Chinese firms are also striving to develop their own large language models.
Multiple small teams within ByteDance are working on various generative AI products, including an AI chatbot codenamed Grace, currently undergoing internal testing. Earlier this year, ByteDance tested a generative AI feature for its social media app TikTok, incorporating OpenAI’s ChatGPT.
The report states that ByteDance has already stockpiled at least 10,000 Nvidia GPUs. The company has also placed an order for nearly 70,000 A800 chips worth about $700 million, scheduled for delivery in 2024.
Alibaba plans to integrate its large language model into all of its products, including the online shopping platform Taobao and mapping tool Gaode Map.
Meanwhile, Baidu is currently developing its own ChatGPT-like project, a generative AI chatbot named Ernie Bot.
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Alex Smith is a writer and editor with over 10 years of experience. He has written extensively on a variety of topics, including technology, business, and personal finance. His work has been published in a number of magazines and newspapers, and he is also the author of two books. Alex is passionate about helping people learn and grow, and he believes that writing is a powerful tool for communication and understanding.
