China’s tech giants,Swipe including Baidu, ByteDance, Tencent, and Alibaba, have initiated orders with Nvidia for $5 billion worth of chips to construct generative artificial intelligence systems, as reported by the Financial Times on Wednesday. These companies have placed orders totaling $1 billion to acquire approximately 100,000 units of Nvidia’s A800 processors, with deliveries expected within the current year. These details were disclosed by individuals familiar with the situation. Additionally, these companies have undertaken acquisitions of graphics processing units valued at $4 billion, with shipments of these units slated for the year 2024. The Nvidia A800 processor is specifically tailored for the Chinese market, a response to the export controls on semiconductor sales to China that were established by the Biden administration in October of the previous year. The A800 operates at 70% of the speed of the A100 while adhering to stringent US export criteria. [Financial Times]
