Chinese data centers told to stick to Nvidia chips, domestic chips not compatible
Posted: Dec 09, 2024
- China is trying to establish a domestic GPU market and move away from reliance on Nvidia chips
- US export restrictions have hindered China's access to advanced chips, leading to the development of domestic solutions
- Despite progress in GPU hardware and software development, challenges with compatibility and cost remain significant
- Chinese data centers are advised to stick with Nvidia chips due to the high costs and complexity involved in transitioning to domestic alternatives
- Rapid growth in China's AI computing power, with a 27% increase in computing capacity and a 70% increase in GPU-based computing power
- Concerns about overcapacity and underutilization in China's AI hardware landscape as more internet data centers are built
- China Academy of Information and Communications Technology (CAICT) recommends using Nvidia chips for high-performance computing units or domestic solutions as needed.
What do people on Reddit think?
🚨 Reddit sentiment: positive - Most users express positive sentiment towards Nvidia regarding its dominance in the GPU market in China and successful performance of related stock calls. Summarized comments: - China was not able to produce world-class GPUs matching Nvidia's capabilities - Nvidia sells less capable chips to China, but they are still better than domestic options - Some users are happy with Nvidia calls performing well - The need for Nvidia chips may be tied to China's policy on key minerals and chip imports - Speculation on Nvidia's stock price reaching 160 Stock tickers discussed: $NVDA
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