Alibaba, Baidu Adopt In-House AI Chips Challenging Nvidia in China

Chinese tech giants Alibaba and Baidu have begun using their own internally developed AI chips to train artificial intelligence models, reducing their dependence on Nvidia processors. Alibaba has utilized its proprietary chips for smaller AI models, while Baidu employs its Kunlun P800 chip for training its Ernie AI model. Despite this shift, both companies continue to rely on Nvidia's chips for more advanced AI model development. This transition is driven in part by U.S. export restrictions limiting Nvidia's chip capabilities in China and Beijing's push for domestic technology adoption. Alibaba's 'Zhenwu' chip is reported to compete closely with Nvidia's H20 processor, the most powerful Nvidia chip currently available in China. This strategic move by Alibaba and Baidu could significantly impact Nvidia's business in China and reflects a broader intensification of the U.S.-China technological rivalry in AI development.