Chinese Tech Giants Have Started Stocking Up on Chips to Defy Potential US Bans! (They Started Making a Fortune in Artificial Intelligence)
August 26, 2024
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China is involved in many things, from cars to chips. With US sanctions was confronted. Artificial intelligence infrastructures were one of them. The United States took steps to
China is involved in many things, from cars to chips. With US sanctions was confronted. Artificial intelligence infrastructures were one of them. The United States took steps to halt the country’s progress in this technology. In recent years, China has tried to restrict access to artificial intelligence chips. export controls We have seen these kinds of movements from the US.
Now, it is being reported that despite these sanctions, China is focusing more on artificial intelligence. According to the Financial Times report, Chinese tech giants have increased their spending on artificial intelligence this year.
Chinese companies have doubled their spending on artificial intelligence infrastructure
Chinese technology companies continue to grow despite US restrictions, according to sources familiar with the matter. More than doubles its investment in artificial intelligence lifted it. Such moves have been reported by many giants, from ByteDance to Baidu and Tencent.
For example Alibaba, Tencent and Baidu invested $7 billion in this field in the first half of the year. spent approx. This means that there is an increase of more than 2 times compared to the same period of the previous year.
Alibaba CEO Eddie Wu said earlier this month that they were determined to grow in the field of artificial intelligence. These figures bear that out. The e-commerce giant bought processors to train its Tongyi series of AI models and leased computing power to others. Capital expenditure in this area compared to last year 123% increased by.
TikTok’s parent company ByteDans has also taken a similar action. Sources indicate that the company’s AI-related costs, which are not subject to investor pressure because it is a private company, 50 billion dollars He declared it was round.
US export controls limit China’s access to key AI chips such as NVIDIA’s H100 or the upcoming Blackwell series. block your accessHowever, Chinese companies They can buy lower performance processors like NVIDIA H20. Predictions: NVIDIA for Chinese Tech Firms More than 1 million chips that he will send it. Let’s consider that it is $12-13,000 per unit. ByteDance is one of the company’s major customers.
In short, US sanctions have not stopped Chinese companies. Even though their reach is limited, they continue to spend billions of dollars on AI and try to grow. We will see how far they will evolve in this area in the coming years.
Alice Smith is a seasoned journalist and writer for Div Bracket. She has a keen sense of what’s important and is always on top of the latest trends. Alice provides in-depth coverage of the most talked-about news stories, delivering insightful and thought-provoking articles that keep her readers informed and engaged.