Chinese AI companies such as Tencent have actually exposed that they have actually stocked large quantities of NVIDIA GPUs to last them for generations however likewise prepare to change to domestic options in the future.
Tencent Wants To Switch To Domestic Products But "Stockpile" of NVIDIA AI GPUs To Last Them A Few Generations
According to a report by Reuters, Tencent has actually divulged that the business has actually determined the prospective effects of the brand-new United States curbs, which have actually limited them from the gain access to of NVIDIA's higher-end H800 and A800 AI GPUs. In a third-quarter incomes report, Tencent states that it has enough of NVIDIA's devices to train its customized "Hunyuan" design, which might last for a number of generations to come. For a specific duration, Tencent will have no impact on its "working design" and the business will continue to establish its existing AI-based resources.
We will need to determine methods to make the use of our AI chips more effective. And we will likewise attempt to search for domestic sources for these training chips
-Tencent's President Martin Lau
Tencent isn't entirely "invulnerable" to the brand-new United States sanctions, considering that the business thinks that its capability to offer "innovative" cloud services to customers will be put at stake. This demonstrates how deep Team Green was when it concerns market penetration, because its AI GPUs were crucial for the market's advancement, specifically when it comes to cloud computing. With a dominance of more than 90% in the Chinese market, the current United States restriction will have a big effect in decreasing the rate of development of the regional markets.
While there are reports focusing on that NVIDIA may present more Hopper GPUs for the afflicted markets, the constant interruptions have actually troubled Chinese companies to a higher level, which is why they are searching for options. Tencent will supposedly sign up with the similarity Baidu and other Chinese companies in the desire to try to find "internal" options to counter United States affect on the marketplaces, and the most practical option is viewed as Huawei's Ascend AI chips, with its flagship design reaching around 80% reasoning and 70% training efficiency compared to the NVIDIA's A100 accelerator. Tencent intends on using homegrown devices for "less top priority" jobs in an effort to diversify its item portfolio.
We'll attempt to see whether we can unload a great deal of the reasoning ability to lower-performance chips so that we can keep most of our high-performance AI chips for training functions.
It will be intriguing to see how the marketplace progresses because Chinese tech companies and their AI options are now the only option for China's substantial domestic market which wishes for more chips. This might obviously eject AMD and NVIDIA from the local AI markets if the sanctions under the Biden federal government continue to harshen.
News Source: Reuters