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Who’s making chips for AI? Chinese manufacturers lag behind US tech giants

May 03, 2024 - nature.com
The rapid advancement of generative artificial intelligence (AI) has led to a global race to produce powerful computer chips, with Nvidia leading the pack. However, a US ban on selling high-quality chips to China is hindering the country's progress in key technologies. The ban, imposed by the US Department of Commerce, prohibits the sale of certain technologies to China, including chips that can operate above speeds of 300 teraflops. This has significantly limited China's progress with training AI models, with the country's leading competitor to Nvidia, Huawei, still lagging behind.

Despite the ban, China is exploring other avenues, including a "black market" for high-end chips and using AI itself to design computer chips. A team at the Chinese Academy of Sciences Institute of Computing Technology in Beijing has developed the first chip to be designed by AI without human input, called Enlightenment-1. However, China's lack of competitiveness in AI could exacerbate what some describe as a brain drain in the country, with many ambitious Chinese students seeking opportunities abroad.

Key takeaways:

  • A US ban on selling high-quality computer chips to China is hindering the country's progress in key technologies, particularly in the field of generative artificial intelligence (AI).
  • Nvidia, a leading developer of computer chips, saw its market value exceed US$2 trillion for the first time in March, largely due to the global race to produce increasingly powerful chips for AI.
  • China's leading competitor to Nvidia, Huawei, is attempting to develop its own AI chips, but is estimated to be five to ten years behind the United States.
  • Despite the restrictions, China has made some progress in chip development, with the first chip designed by AI without human input, called Enlightenment-1, being developed in the past year.
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