Well before Washington banned Nvidia’s exports of superior processing that is graphic to China, the country’s tech giants had been hoarding them in anticipation of an escalating tech war between the two nations.

Baidu, one of the tech firms building China’s counterparts to OpenAI, has secured enough AI chips to keep training its ChatGPT equivalent Ernie Bot for the year that is“next two,” the firm’s CEO Robin Li stated on an earnings call this week.

“Also, inference needs less chips that are powerful and we believe our chip reserves, as well as other alternatives, will be sufficient to support lots of AI-native apps for the end users,” he said. “And in the run that is long struggling in acquiring the essential advanced chips undoubtedly impacts the rate of AI development in Asia. Therefore, we’re proactively alternatives that are seeking*)Other Deep-pocketed tech that is chinese are also using proactive steps as a result to U.S. export settings. Baidu, ByteDance, Tencent and Alibaba collectively bought around 100,000 devices of A800 processors Nvidia becoming delivered this costing them as much as $4 billion, the Financial Times reported in August year. They also purchased $1 billion worth of GPUs that are scheduled for delivery in 2024.

Such Heavy investments that are upfront quickly deter numerous startups from going into the LLM battle. Exclusions do occur in the event that business that is young to secure handsome investments quickly. 01.AI, which was founded in late March by prominent investor Kai-Fu Lee, acquired a number that is substantial of inference potato chips through financial loans and it has already repaid its financial obligation after increasing money that appreciated it at $1 billion.

With its book of GPUs, Baidu recently established the Ernie Bot 4, which Li stated is “not substandard in virtually any respect to*)Rating that is GPT-4 LLMs is tricky thanks to the complexity that is sheer of AI designs. Numerous Chinese AI corporations have actually resorted to position boosting by faithfully satisfying the requirements of LLM maps, however the effectiveness of the designs when put on genuine programs real-life is judgment that is still pending

Smaller AI players, lacking the cash flow to hoard chips, will have to settle for less processors that are powerful aren’t under U.S. export settings. Instead, they could await acquisition that is potential. Li expects that with a confluence of factors, including the scarcity of advanced chips, high demand for data and AI talent, and huge upfront investments, the industry will soon transition into a “consolidation stage* that is.”(

About Author /