Major Chinese companies such as Alibaba and ByteDance are rapidly entering the generative AI race. According to Financial TimesChinese IT monsters ordered $5 billion worth of equipment from NVIDIA.
For now, NVIDIA is providing cut down versions of its AI GPUs, such as the A800 and H800, to China to circumvent US sanctions. Despite the reduced performance, these GPUs are selling with a bang, especially the A800 model, which is rumored to cost up to 6.9 million rubles (500,000 yuan or $69,000).
The report reveals that companies such as Baidu, ByteDance, Tencent, and Alibaba have ordered 100,000 NVIDIA A800 GPUs for a total of $1 billion. In addition, they have placed additional orders worth up to $4 billion with a delivery plan by 2024. This decision was driven by the desire to bring generative AI into mainstream applications, which requires large-scale training of language models.
Growth in demand is beneficial for NVIDIA, which sees great prospects in this situation. However, along with this comes problems: a huge volume of orders and problems with suppliers lead to delays of up to six months. NVIDIA plans to expand its supplier network, but this may be more difficult than it looks, given various difficulties and regulations.
2023-08-12 15:00:00
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