Alibaba, ByteDance move AI training overseas to access NVIDIA chips
What's the story
Leading Chinese technology companies, including Alibaba and ByteDance, are shifting their artificial intelligence (AI) model training operations to Southeast Asia. The move is aimed at gaining access to crucial NVIDIA chips for their cutting-edge AI projects. This strategic shift also underscores the ongoing US-China rivalry in the field of advanced technology.
Strategy shift
Offshore training on the rise after US export restrictions
The Financial Times reported that offshore training has been on the rise since the US imposed restrictions on H20 sales in April. Chinese companies are now leasing data centers owned by non-Chinese entities for their overseas operations. DeepSeek, a company that stockpiled a large number of NVIDIA chips before the US export bans, is an exception as it trains its model domestically.
Chip innovation
DeepSeek's collaboration with Huawei for AI chip development
DeepSeek is also working with domestic chipmakers led by Huawei. The collaboration aims to optimize and develop the next generation of Chinese AI chips. This partnership highlights China's commitment to advancing its technological capabilities, even in the face of US restrictions on exports of critical components like NVIDIA chips.