China's internet giants Baidu, ByteDance, Tencent, and Alibaba have reportedly ordered $5bn worth of Nvidia chips crucial for developing generative AI systems. The companies plan to purchase 100,000 A800 processors this year and more GPUs in 2024. Nvidia is offering these processors in China to comply with export control regulations after U.S. officials demanded a halt to exports of the company's top computer chips for AI-related work in the country. The news comes after President Biden signed an executive order limiting U.S. investment in China's sensitive technology sectors.
China's tech giants splurge $5 billion on Nvidia chips for AI domination
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