AI Race Drives China’s Shift Away From Nvidia Chips
China’s AI industry is moving away from Nvidia as companies increase purchases of homegrown chips amid widening US-China technology tensions.
China Goes for Domestic Chips
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China Goes for Domestic Chips
REPORTER:
More Chinese companies are ditching Nvidia in favor of homegrown chips, as the technological divide between the US and China continues to widen.
A Bloomberg Intelligence survey of Chinese executives found that in the coming year, they expect to buy almost half of their AI accelerators domestically, up from 30 percent now. US restrictions prevent Nvidia from selling its most advanced chips to China. Though the company can sell its H-20 chips there, Beijing has urged domestic AI firms not to buy them. The report also says China is allocating almost 300 billion US dollars to build data centers across the country in the next five years, with 80 percent of core technologies to come from domestic suppliers.
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China Chip Shift
REPORTER:
Chinese companies are reportedly leaving Nvidia in favor of homegrown chips, as US-China tech tensions reshape the AI industry.
A Bloomberg Intelligence survey of Chinese executives found they expect domestic AI accelerators to account for almost half of their spending over the next year. This represents a 30% increase compared to this year.
It comes as US export restrictions and supply constraints make Nvidia's advanced chips harder to obtain. Chinese firms are expected to benefit from the shift.
China is also allocating roughly 294 billion US dollars to build data centers across the country in the next five years. At least 80% of core technologies will be supplied by domestic companies.
