This comes amidst the Biden administration's rules to halt China's semiconductor industry growth while the U.S. invests heavily in its own chip industry. Nvidia offers the A800 processor in China to comply with export control rules after U.S. officials asked the company to halt exports of its top two computing chips for AI-related work. The recent orders follow President Biden's executive order prohibiting certain U.S. investments in sensitive technology in China.
Key takeaways:
- China's internet giants, including Baidu, ByteDance, Tencent, and Alibaba, are reportedly rushing to acquire high-performance Nvidia chips, making orders worth $5 billion, for building generative artificial intelligence systems.
- The Chinese companies have ordered about 100,000 A800 processors from Nvidia to be delivered this year, and have also purchased a further $4 billion worth of graphics processing units to be delivered in 2024.
- 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 report comes as President Biden 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.