ByteDance's Nvidia GPU stockpile reportedly sold to Tencent and Alibaba, according to the report.
Let's dive into the AI race in China and find out who's in the lead! ByteDance, Alibaba, and Tencent are some major players, but it seems the spotlight is currently on Nvidia's H20 GPUs.
** Hold up, down with the rumors** ByteDance denied reports claiming it has made significant revenue from selling its computing power, with the company calling the allegations "untrue". However, it is known that ByteDance is using a small portion of its computing power for its cloud computing unit, Volcano Engine.
As for Nvidia's H20 GPUs, it appears these bad boys are in hot demand. ByteDance, Alibaba, and Tencent reportedly ordered a whopping $16 billion worth of these chromatic powerhouses in the first quarter, with a sexy, upgraded version boasting high-bandwidth memory in the mix.
But wait, there's a catch Recently, U.S. export restrictions have made it trickier for Chinese companies, including our trio of titans, to get their hands on advanced semiconductor technology. Furthermore, rumors suggest that the H20 orders may not comply with U.S. export rules, as the clusters are suspected of surpassing certain thresholds due to size and compute density.
** Moving targets** If the allegations are true, companies like Tencent may find themselves in a pickle, considering there are concerns that using H20 chips to power their operations could breach performance limits. On the upside, the pre-restriction stockpiling should keep AI innovations alive and kicking, at least in the short term.
** Long game ahead** However, the long-term outlook might be a bit hazy, as the H20 supply dwindles and R&D could experience delays. Some are pondering whether to employ slower in-house or domestic alternatives, but it seems NVIDIA's offerings still hold the upper hand in performance and ecosystem support.
Huawei to the rescue? Huawei's Ascend 910C GPU has shown some potential as a substitute, but it's got a long way to go to catch up with NVIDIA. Another possibility lies in leveraging overseas subsidiaries to dodge export controls, but hey, let's hope the regulatory risks aren't as steep as the legal fees for that one!
** A (financial) setback for Nvidia** The U.S. restrictions have reportedly cost Nvidia a whopping $5.5 billion in revenue. But here's the thing: Chinese tech giants may have limited near-term capacity, but sustained AI innovation hinges on domestic semiconductor advancements or regulatory relief. Game on, y'all!
- ByteDance refuted claims that it generated substantial income from selling its computing power, asserting the allegations as "untrue".
- ByteDance, among others, ordered a substantial $16 billion worth of Nvidia's H20 GPUs in the first quarter, with a focus on the versions offering high-bandwidth memory.
- The recent U.S. export restrictions make it more challenging for Chinese companies like ByteDance, Alibaba, and Tencent to acquire advanced semiconductor technology, including Nvidia's H20 GPUs, due to potential non-compliance with export rules regarding size and compute density.
- Huawei's Ascend 910C GPU could potentially serve as a substitute for Nvidia's H20, but it still lags behind in performance and ecosystem support.
