The United States has been restricting China’s access to cutting-edge semiconductors, prompting Beijing to ramp up efforts to nurture its homegrown chip industry. As a result, Chinese tech giants like Huawei, Alibaba, and Baidu are trying to create alternatives to NVIDIA, the American firm that designs graphics processing units (GPUs) essential for training huge AI models.
Huawei, for instance, has a chip design unit called HiSilicon, which creates data center processors under the Ascend series. The company is gearing up to launch the Ascend 910C, which could be on par with NVIDIA’s H100 product. Huawei has also developed an AI server brand called Atlas and sells chips as part of servers that go into data centers.
Alibaba and Baidu are also designing their own semiconductors for AI processes. Alibaba’s semiconductor design unit, T-Head, has developed an AI inference chip called the Hanguang 800, which has already been deployed to accelerate its recommendation system on its e-commerce platform. Baidu has integrated its Kunlun chip into its data centers and autonomous driving sector.
Other Chinese companies vying for NVIDIA’s dominance in the AI chip market include Biren Technology, Cambricon Technologies, Moore Threads, and Enflame Technology. While some of these firms have reported significant losses or have been added to the U.S. Entity List, they continue to receive backing from big brand names and venture capital firms.
In a statement, Paul Triolo, an associate partner at consulting firm Albright Stonebridge, noted that it’s not just about the hardware but about the overall ecosystem, tools for developers, and the ability to continue evolving the ecosystem as technology advances. Here, Huawei holds advantages in building a software ecosystem around its Ascend series of data center processors.
As the AI industry continues to boom, China’s goal is to play a leading role in the chip industry. With U.S. sanctions restricting access to cutting-edge semiconductors, Beijing is focusing on nurturing its homegrown chip sector to become more self-sufficient and less reliant on American technology.
Source: https://www.cnbc.com/2024/09/17/chinese-companies-aiming-to-compete-with-nvidia-on-ai-chips.html