As the US plans to restrict the export of artificial intelligence (AI) chips to China, a Chinese AI chip firm has secured an investment pledge of $280 million.
The chip restrictions and other sanctions on Chinese AI companies were seen as a huge blow to the countries’ AI developments. However, the firms have started to figure out alternatives, building resilience against the crackdowns.
Chinese AI Firms Seek Domestic Alternatives to Nvidia
According to Bloomberg, China is ramping up on setting challengers to the world’s largest chipmaker – Nvidia. As a result, Guangzhou government-backed investors reportedly pledged an investment of ¥2 billion (around $280 million) in Shanghai Biren Intelligent Technology Co. (Biren).
Bloomberg’s sources further informed that Biren aims to secure additional funding from the Hong Kong government. Another Chinese AI chip startup, Moore Threads, reportedly raised millions of yuan through a series-B round.
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These developments come as a relief for Chinese firms such as Baidu and Tencent Holdings, which were focusing on AI developments. Nonetheless, these AI firms revealed that they had stored enough Nvidia chips to keep the operations running.
Baidu boldly states that its latest Artificial Intelligence model can compete with OpenAI’s GPT-4. Meanwhile, Alibaba announced its AI model, Tongyi Qianwen 2.0, that has capabilities of understanding, copywriting, reasoning, and hallucination prevention.
In October, the US Commerce Department unveiled AI chip restrictions on China to thwart its military advancement using the technology. BeInCrypto previously reported:
Author: Harsh Notariya
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