BEIJING/SHANGHAI: Baidu ordered synthetic intelligence chips from Huawei this 12 months, two individuals aware of the matter stated, including to indicators that US stress is prompting Chinese language acceptance of the agency’s merchandise as an alternative choice to Nvidia‘s.
One of many individuals stated Baidu, considered one of China’s main AI companies, which operates the Ernie giant language mannequin (LLM), positioned the order in August, forward of extensively anticipated new guidelines by the US authorities that in October tightened restrictions on exports of chips and chip instruments to China, together with these of US chip large Nvidia.
Baidu ordered 1,600 of Huawei Applied sciences’ 910B Ascend AI chips – which the Chinese language agency developed as an alternative choice to Nvidia’s A100 chip – for 200 servers, the supply stated, including that by October, Huawei had delivered extra 60% of the order, or about 1,000 chips, to Baidu.
The second individual stated that the order’s whole worth was roughly 450 million yuan ($61.83 million) and that Huawei was to ship the entire chips by the top of this 12 months. Each individuals declined to be named as a result of the small print of the deal have been confidential.
Though the order is tiny relative to the hundreds of chips high Chinese language tech companies have traditionally ordered from Nvidia, the sources stated it was important, because it confirmed how some companies might shift away from the US firm.
Baidu, alongside Chinese language friends corresponding to Tencent and Alibaba, is thought to be a long-time consumer of Nvidia. Baidu was not beforehand recognized to be a AI chip buyer of Huawei.
Though Huawei’s Ascend chips are nonetheless seen as far inferior to Nvidia’s by way of efficiency, the primary supply stated they have been essentially the most subtle home possibility obtainable in China.
“They have been ordering 910B chips to organize for a future the place they could not have the ability to buy from Nvidia,” the primary supply stated.
Baidu and Huawei didn’t reply to requests for remark. Nvidia declined to remark.
Huawei’s web site says it has since 2020 collaborated with Baidu to make its AI platform appropriate with Huawei {hardware}. In August, the 2 corporations stated they’d deepen compatibility between Baidu’s Ernie AI mannequin and Huawei’s Ascend chips.
Baidu has developed its personal line of Kunlun AI chips, which the corporate says helps large-scale AI computing, however the firm has primarily relied on Nvidia’s A100 chip to coach its LLM.
After the U.S. final 12 months imposed guidelines stopping Nvidia from promoting its A100 and H100 chips to China, the corporate issued new A800 and H800 chips as alternate options for Chinese language clients, together with Baidu. Nvidia is not capable of promote these chips to China due to the October guidelines.
Huawei alternative
Analysts predicted final month that the US curbs would create a gap for Huawei to develop in its $7 billion dwelling market. The corporate has been the topic of US export controls since 2019.
The order provides to indicators of technological advances for Huawei, as Beijing pours funding into its home semiconductor trade to assist it meet up with abroad friends and urges state-owned companies to exchange overseas expertise with home alternate options.
Huawei drew substantial international consideration in August when it unexpectedly unveiled a brand new smartphone that analysts stated makes use of internally developed processors that includes superior semiconductor expertise, highlighting the corporate’s progress in chip growth regardless of sanctions.
In September, Reuters reported that Huawei’s in-house chip design unit, HiSilicon, had commenced shipments of newly developed Chinese language-made processors for surveillance cameras to purchasers in 2023 in one other comeback signal.
One of many individuals stated Baidu, considered one of China’s main AI companies, which operates the Ernie giant language mannequin (LLM), positioned the order in August, forward of extensively anticipated new guidelines by the US authorities that in October tightened restrictions on exports of chips and chip instruments to China, together with these of US chip large Nvidia.
Baidu ordered 1,600 of Huawei Applied sciences’ 910B Ascend AI chips – which the Chinese language agency developed as an alternative choice to Nvidia’s A100 chip – for 200 servers, the supply stated, including that by October, Huawei had delivered extra 60% of the order, or about 1,000 chips, to Baidu.
The second individual stated that the order’s whole worth was roughly 450 million yuan ($61.83 million) and that Huawei was to ship the entire chips by the top of this 12 months. Each individuals declined to be named as a result of the small print of the deal have been confidential.
Though the order is tiny relative to the hundreds of chips high Chinese language tech companies have traditionally ordered from Nvidia, the sources stated it was important, because it confirmed how some companies might shift away from the US firm.
Baidu, alongside Chinese language friends corresponding to Tencent and Alibaba, is thought to be a long-time consumer of Nvidia. Baidu was not beforehand recognized to be a AI chip buyer of Huawei.
Though Huawei’s Ascend chips are nonetheless seen as far inferior to Nvidia’s by way of efficiency, the primary supply stated they have been essentially the most subtle home possibility obtainable in China.
“They have been ordering 910B chips to organize for a future the place they could not have the ability to buy from Nvidia,” the primary supply stated.
Baidu and Huawei didn’t reply to requests for remark. Nvidia declined to remark.
Huawei’s web site says it has since 2020 collaborated with Baidu to make its AI platform appropriate with Huawei {hardware}. In August, the 2 corporations stated they’d deepen compatibility between Baidu’s Ernie AI mannequin and Huawei’s Ascend chips.
Baidu has developed its personal line of Kunlun AI chips, which the corporate says helps large-scale AI computing, however the firm has primarily relied on Nvidia’s A100 chip to coach its LLM.
After the U.S. final 12 months imposed guidelines stopping Nvidia from promoting its A100 and H100 chips to China, the corporate issued new A800 and H800 chips as alternate options for Chinese language clients, together with Baidu. Nvidia is not capable of promote these chips to China due to the October guidelines.
Huawei alternative
Analysts predicted final month that the US curbs would create a gap for Huawei to develop in its $7 billion dwelling market. The corporate has been the topic of US export controls since 2019.
The order provides to indicators of technological advances for Huawei, as Beijing pours funding into its home semiconductor trade to assist it meet up with abroad friends and urges state-owned companies to exchange overseas expertise with home alternate options.
Huawei drew substantial international consideration in August when it unexpectedly unveiled a brand new smartphone that analysts stated makes use of internally developed processors that includes superior semiconductor expertise, highlighting the corporate’s progress in chip growth regardless of sanctions.
In September, Reuters reported that Huawei’s in-house chip design unit, HiSilicon, had commenced shipments of newly developed Chinese language-made processors for surveillance cameras to purchasers in 2023 in one other comeback signal.
