China's internet giants order $5 bln of Nvidia chips to power AI ambitions

[F-22Raptor]

Aug 9 (Reuters) - China's internet giants are rushing to acquire high-performance Nvidia (NVDA.O) chips vital for building generative artificial intelligence systems, making orders worth $5 billion, the Financial Times reported on Wednesday.

Baidu (9888.HK), TikTok-owner ByteDance, Tencent (0700.HK) and Alibaba (9988.HK) have made orders worth $1 billion to acquire about 100,000 A800 processors from the U.S. chipmaker to be delivered this year, the FT reported, citing multiple people familiar with the matter.

The Chinese groups had also purchased a further $4 billion worth of graphics processing units to be delivered in 2024, according to the report.

A Nvidia spokesperson would not elaborate on the report but said that "consumer internet companies and cloud providers invest billions of dollars on data center components every year, often placing orders many months in advance."

The Biden administration last October issued a sweeping set of rules designed to freeze China's semiconductor industry in place while the U.S. pours billions of dollars in subsidies into its chip industry.

Nvidia offers the A800 processor in China to meet export control rules after U.S. officials asked the company to stop exporting its two top computing chips to the country for AI-related work.

The FT report comes as President Biden on Wednesday signed an executive order that would narrowly prohibit certain U.S. investments in sensitive technology in China and require government notification of funding in other tech sectors.

China's internet giants order $5 bln of Nvidia chips to power AI ambitions -FT

China's internet giants are rushing to acquire high-performance Nvidia chips vital for building generative artificial intelligence systems, making orders worth $5 billion, the Financial Times reported on Wednesday.

www.reuters.com

Chinas heavy reliance on American know how continues

 

[MH.Yang]

In 2019, China imported $300 billion worth of chips from the U.S.

In 2023, China imported $5 billion worth. It became a big news that proved China's dependence on the US.


By the way in the first 4 months of this year, China exported $23 billion worth of chips. China has become a chip exporter.

 

[Nan Yang]

Wall Street and China

In a trade. BOTH sides benefit.

 

[Hack-Hook]

In 2019, China imported $300 billion worth of chips from the U.S.

In 2023, China imported $5 billion worth. It became a big news that proved China's dependence on the US.


By the way in the first 4 months of this year, China exported $23 billion worth of chips. China has become a chip exporter.

i guess the type of chip is important , China may be independent in developing certain general purpose chips but developing something like nVidia AI chips , to be frank is out of reach of nearly anybody in the world and they have a virtual monopoly in that market .
so really its not news if anybody be china , japan , germany or n.Korea, USA, England or .......... want to get its hand on those chips

 

[hirobo2]

NVidia sux. I'd never ever get a NVidia card. Several years ago, my PC came with an OEM NVidia GPU card. I swapped it out for a Radeon and suddenly noticed how much prettier game graphics looked. It was like going from a Toyota (NVida) to a Lexus (Radeon). Don't know why NVidia getting all the attention these days, terrible products not even better than Radeons!

 

[kuge]

Aug 9 (Reuters) - China's internet giants are rushing to acquire high-performance Nvidia (NVDA.O) chips vital for building generative artificial intelligence systems, making orders worth $5 billion, the Financial Times reported on Wednesday.



Chinas heavy reliance on American know how continues

5B is heavily reliance??

 

[BHAN85]

In 2019, China imported $300 billion worth of chips from the U.S.

In 2023, China imported $5 billion worth. It became a big news that proved China's dependence on the US.


By the way in the first 4 months of this year, China exported $23 billion worth of chips. China has become a chip exporter.

5 bn is no the total of China chips imports, it's just that kind of chips to use in AI in Chinese big techs.

Only devil knows what they are planning to do with AI and 5 bn chips for it.