(Reuters)-Chinese Alibaba and Baidu began using internally designed chips to train artificial intelligence models, partially replacing those made by Nvidia, the Information website said on Thursday, citing four sources.
Alibaba has been using its own chips for smaller AI models this year, while Baidu is experimenting with the training of new versions of its Ernie model using its Kunlun P800 chip, the report said.
Alibaba and Baidu did not immediately respond to Reuters’ comments requests.
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The measure is a significant change in China’s technology scenario-where companies depend on most of NVIDIA’s powerful processors for AI development-and would further impair the business of the US company in China.
“It is undeniable that competition has arrived … We will continue to work to gain the confidence and support of the main developers everywhere,” said a Nvidia spokesman in response.
Increased US export restrictions on the supply of AI to China has led Chinese companies to increase its own AI AMA arsenal, with the growing pressure from Beijing over companies to use national technology.
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Neither Alibaba nor Baidu totally abandoned Nvidia, according to the report, with both companies using Nvidia chips to develop their most advanced models.
Although Nvidia’s H20 chip – the most powerful AI processor than the company is allowed to sell in China – has no such computing power as the H100 or Blackwell series, it still surpasses the Chinese alternatives in terms of performance.
However, Alibaba’s AI chip is now good enough to compete with Nvidia’s H20, said The Information, citing three employees who used the chip.
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Meanwhile, Nvidia’s chief executive Jensen Huang said this month that discussions with the White House to allow the company to sell a less advanced version of its next-generation chip to China will take time.
The company has signed an agreement with President Donald Trump for export licenses in exchange for 15% of sales of his H20 chips in China.
(Report from Deborah Sophia in Bengaluru)
