Baidu Chooses Huawei AI Chips: Baidu, China’s biggest AI firm, has reportedly ordered Huawei AI chips in a strategic move that reflects tech’s changing dynamics. Chinese enterprises are increasingly exploring alternatives to Nvidia, a major semiconductor manufacturer, in reaction to US pressure.
The order for Huawei’s 910B Ascend AI chips, positioned as an alternative to Nvidia’s A100 chip, was placed in August, just before the U.S. government introduced tighter restrictions on chip exports to China, affecting Nvidia. Baidu ordered 1,600 of these chips for use in 200 servers, with Huawei having delivered over 60% of the order, roughly 1,000 chips, by October.
The value of the order is estimated at around 450 million yuan ($61.83 million), with Huawei committed to delivering the entire order by year-end. While this order might seem relatively modest compared to the large quantities of chips that Chinese tech firms historically acquired from Nvidia, it carries significant implications. It underscores the potential shift away from Nvidia and the willingness of Chinese companies to explore alternatives.
Historically, Baidu, along with other tech giants like Tencent and Alibaba, has been a notable client of Nvidia. Still, Baidu’s decision to source AI chips from Huawei, while signaling a move towards domestic alternatives, also acknowledges that Huawei’s Ascend chips are currently considered less powerful than Nvidia’s offerings. However, they are regarded as the most advanced domestic option available in China.
Also Read: Nvidia Faces Crossroads: $5 Billion in China Chip Orders at Stake
The motivation behind this order seems to be a proactive approach by Baidu to prepare for scenarios where procurement from Nvidia may become restricted. Huawei’s growing partnership with Baidu since 2020 to ensure compatibility between Baidu’s AI platform and Huawei hardware suggests that the companies are working to bolster domestic alternatives.
Baidu, which has also developed its own line of Kunlun AI chips, has primarily relied on Nvidia’s A100 chip for training its LLM. Last year, U.S. restrictions prevented Nvidia from selling its A100 and H100 chips to China. In response, Nvidia introduced A800 and H800 chips as alternatives for its Chinese clients. However, the October rules have further limited Nvidia’s ability to sell these chips to China.
This strategic mov from Baidu not only showcases the company’s forward-thinking approach but also hints at the potential growth of Huawei in its $7 billion home market, which could be facilitated by the latest U.S. restrictions. Huawei has been the subject of U.S. export controls since 2019, but the company continues to make strides in the semiconductor industry. It has attracted global attention with its advancements in chip development, particularly with the introduction of new processors for surveillance cameras.
As Beijing focuses on bolstering its domestic semiconductor industry and encouraging state-owned companies to embrace domestic technology, Huawei’s opportunities in the tech landscape seem promising. This order for AI chips represents a significant step in that direction, underscoring Huawei’s resilience and technological prowess. The industry will be closely watching how these developments reshape the dynamics of the global tech sector.
The strategic partnership between Baidu and Huawei, amid evolving geopolitical and technological shifts, is poised to impact the semiconductor landscape in the coming years.
Our Reader’s Queries
Did Baidu order 1600 of Huawei’s 910B Ascend AI chips?
Baidu has recently purchased 1,600 of Huawei Technologies’ 910B Ascend AI chips, which were designed as a substitute for Nvidia’s A100 chip. The order was intended for 200 servers, and by October, Huawei had already delivered over 60% of the order, which equates to approximately 1,000 chips for Baidu.
Does Baidu use AI?
Baidu recently launched the latest iteration of its generative AI model, Ernie 4.0. The first version of Ernie was introduced in March, and the latest update promises to be even more advanced.
How are AI chips different?
Unlike CPUs, AI chips utilize parallel computing to perform multiple calculations at once, resulting in faster and more efficient processing. There are different types of AI chips designed for various purposes.
What is the AI of Huawei?
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