Nvidia among investors in xAI’s $20 bln capital raise- Bloomberg
Investing.com-- Shares of Alibaba Group (HK:9988) and Baidu Inc (HK:9888) surged on Friday after The Information reported that both companies have begun using their own internally developed chips to train AI models, reducing reliance on Nvidia’s (NASDAQ:NVDA) processors.
According to The Information report, Alibaba has been employing its self-designed chips for smaller AI models since early this year, while Baidu is testing its Kunlun P800 chip for training newer versions of its Ernie AI model.
This move marks a significant shift in China’s AI development ecosystem, which has long depended heavily on Nvidia’s high-performance chips.
The transition comes after increased U.S. export restrictions on advanced AI hardware to China, prompting Chinese companies to prioritize domestically produced technologies.
Chinese regulators have recently demanded that companies justify purchases of Nvidia’s H20 chips, especially for government or security-related applications, citing concerns over possible backdoor access -- allegations Nvidia has denied.
Renewed optimism around AI in the U.S. also contributed to the stock rally. This came after Oracle Corporation (NYSE:ORCL), earlier this week, revealed multi-billion-dollar contracts with AI firms, including a reported landmark $300 billion agreement with OpenAI for computing power.