The Strategist

FT: Chinese companies rush to buy chips amid US policies

08/10/2023 - 03:29

According to sources cited by the Financial Times newspaper, major Chinese companies are rushing to purchase chips from US manufacturer Nvidia, having already placed orders for $5 billion in total. The US may soon impose restrictions on the export of chips used in artificial intelligence (AI) technologies to China.

The newspaper reports, citing anonymous sources, that "Chinese internet giants are rushing to buy high-performance Nvidia chips needed for generative AI systems, placing orders worth $5 billion as part of a buying frenzy sparked by fears of new US export controls."

Businesses like Baidu, ByteDance, Tencent, and Alibaba have already placed orders for the delivery of 100,000 A800 processors, which are expected to cost $1 billion. According to Nvidia sources, Chinese corporations have also ordered GPUs worth $4 billion, which will be delivered in 2024.

Under the condition of anonymity, a Baidu employee told the publication, "We will not be able to continue training any major language model without these Nvidia chips."