Baidu says Chinese buyers want local AI chips due to ‘supply chain’ issues
It seems like Nvidia’s not getting back into the Middle Kingdom anytime soon
Baidu, the leading Chinese web company, revealed optimism for its Kunlunxin chip business during its Q2 earnings call, as local buyers appear hesitant to seek alternatives. The executive vice president of Baidu’s AI Cloud Group, Dou Shen, expressed confidence in the long-term growth and commercial potential of Kunlunxin, attributing this optimism to several factors.
Firstly, the demand for inferencing continues to rise, and Baidu anticipates this trend to persist in the long run. Secondly, China's domestic market holds significant growth potential due to the likely constraint of AI chip supplies for an extended period. This has led Chinese customers to increasingly seek high-performance, reliable, and cost-efficient domestic AI chips.
The decision by the U.S. government to allow Nvidia to resume selling its products into China, followed by Beijing's response of granting local companies a veto over any purchases, has created a situation where Chinese buyers are increasingly looking to local chips due to supply challenges.
Written by urgent.news from The Register Science's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
