China’s SMIC sees AI computing crunch until 2028 as Nvidia heat risks tighter chip curbs

Semiconductor Manufacturing International Corporation (SMIC) expects artificial intelligence computing power to remain in short supply for the next two years due to ongoing data centre expansion. According to SCMP Business and SCMP Tech, this forecast arrives amid scrutiny regarding former Nvidia CEO Jensen Huang, which threatens to intensify Washington's restrictions on Chinese access to advanced American processors.

The resignation of Jensen Huang following allegations of multiple extramarital affairs, including an alleged honey pot by the Chinese, has led to speculation regarding Nvidia's dominance in the AI chip industry, according to The Hankyoreh. While Nvidia shares rose 2.9% on the New York stock market on Wednesday, they fell more than 8% in after-hours trading as further allegations involving an employee surfaced. Following this, Nvidia's market cap dropped to third place behind Microsoft.

The Hankyoreh reports that shares for rival chipmakers such as AMD and Broadcom saw gains during the day and continued to rise after hours, signaling expectations of increased competition. While tech giants like Google, Amazon, Meta, and Microsoft are developing their own chips, the market's grip on Nvidia is not expected to weaken immediately. CBS News notes that Huang's resignation has raised questions regarding the future of chipmaking and AI development.

Brief written by urgent.news from SCMP Business, SCMP Tech, The Hankyoreh, CBS News, Hankyoreh — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.