How Chinese AI companies adapt to US restrictions
As the US plans to restrict the export of artificial intelligence (AI) chips to China, a Chinese AI chip company has secured a $280 million investment pledge.
The chip ban and other sanctions against Chinese AI companies were seen as a major blow to the country's AI development. However, the companies have started to look for alternatives, which can build resistance against the bushes.
Chinese AI companies are looking for domestic alternatives to Nvidia
According to Bloomberg, China is gearing up to challenge the world's largest chip maker – Nvidia. As a result, investors backed by the Guangzhou government have reportedly pledged to invest ¥2 billion (about $280 million) in Shanghai Biren Intelligent Technology Co. (Biren).
Bloomberg's sources also said Biren is targeting additional funding from the Hong Kong government. Another Chinese AI chip startup, MooreTrades, has reportedly raised millions of yuan in a Series-B round.
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These developments have come as a relief to Chinese companies such as Baidu and Tencent Holdings, which are focused on AI developments. However, he said, these AI firms have stockpiled enough Nvidia chips to keep operations going.
Baidu boldly claims that its latest artificial intelligence model can compete with OpenAI's GPT-4. Meanwhile, Alibaba announced Tongqi Qianwen 2.0, its AI model with the ability to understand, copy, reason and think.
In October, the U.S. Commerce Department announced restrictions on China's use of the technology to hinder its military advances in AI chips. BeInCrypto previously reported:
“The United States is concerned that sophisticated chips in China's hands could encourage more destructive weapons and military tactics that threaten US national security.”
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