NVIDIA (Nvidia Corp.) "H20" picture processor (GPU) has been released by the United States, but China has resisted it at a high level and cannot be sold in China at present. As the market is released, Alibaba, one of NVIDIA's largest customers, has developed the latest chip and entered the test stage. This chip is mainly used to support more extensive AI recommendation tasks.
Huaer Street Journal reported on August 29, and sources revealed that Alibaba commissioned a Chinese enterprise to produce the above-mentioned chips, which are not handed over to Taiwan Electric Power for manufacturing as before. The Washington government has banned Telco from building AI chips with advanced processes for Chinese companies.
Insiders in the industry pointed out that China is still far away from producing products that can match the most advanced technology of the United States. One of the challenges facing Alibaba and other local operators who rely on Chinese chip foundries is that they cannot obtain sufficient supply. These chip factories use older machines and weaker local equipment, which are still difficult to expand significantly to date.
It is worth noting that the latest chips developed by Alibaba will be compatible with NVIDIA's ecological system, which means that engineers who are used to use NVIDIA software and tool platforms can directly reuse programs written for NVIDIA chips. In contrast, the chip designed by China, which faces US sanctions, is not compatible with the NVIDIA platform.
People familiar with the details pointed out that Chinese cloud private entrepreneurs such as Alibaba have not purchased a large number of Chinese chips. Although officials suggest supporting the "national champion", many businesses have reserved some because they regard Hua as a direct rival in the cloud service market.
Training AI model is China's biggest weakness, and American companies mainly rely on the most powerful NVIDIA products. Sources say Alibaba's latest chips are mainly designed for AI recommendation tasks rather than training models.
After the above news and the excitement of cloud computing's growth in the previous quarter, Alibaba rose 12.9% and closed at $135 on August 29.
NVIDIA ended up falling 3.3% on the 29th and closed at $174.18, reaching a new low since July 25. NVIDIA's crystalline foundry partner Taiwan Electric ADR fell 3.11% simultaneously and closed at US$230.87, reaching a new low since August 21.
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