Baidu orders artificial intelligence chips from Huawei instead of Nvidia

Aly Song/Reuters

Chinese company Baidu has placed an order for artificial intelligence chips from Huawei. This happened against the backdrop of tightening US restrictions on the supply of Nvidia products to the PRC.

Here's What We Know

According to sources, Baidu has ordered 1,600 Huawei Ascend 910B AI processors for servers. The chip is positioned as an alternative to Nvidia's A100. By October, Huawei had delivered more than 60 per cent of the total order.

Previously, Baidu traditionally purchased chips from Nvidia. The new order is small compared to previous volumes, but shows the company's willingness to abandon the US supplier.

Although Huawei's chips are still inferior to Nvidia's products, they are considered the most advanced Chinese-made AI processors.

According to sources, Baidu is keen to prepare for a situation where importing US chips becomes impossible due to US restrictions. The entire order should be fulfilled by the end of 2023.

Go Deeper:

• The U.S. has banned NVIDIA from selling the A800 and H800 chips, which were designed to circumvent export restrictions, to China
• The U.S. has demanded an immediate halt to NVIDIA's AI chip exports to China

Source: Reuters