A Chinese AI chip company has secured an investment commitment of $280 million as the United States plans to restrict artificial intelligence (AI) chip exports to China.
Chip restrictions and other sanctions against Chinese AI companies were seen as a major blow to the country’s AI development. But as companies build resilience to crackdowns, they are starting to look for alternatives.
Chinese AI company seeks domestic alternative to NVIDIA
According to Bloomberg, China is stepping up efforts to establish a challenger to Nvidia as the world’s largest chipmaker. Accordingly, investors backed by the Guangzhou government reportedly pledged to invest 2 billion yen (about $280 million) in Shanghai Biren Intelligent Technology Co. (Biren).
Bloomberg’s sources further informed that Biren is aiming to secure additional funding from the Hong Kong government. Moore Threads, another Chinese AI chip startup, reportedly raised millions of yuan through a Series B round.
Read more: 7 Hottest Blockchain Stocks to Watch in 2023
This development brought relief to Chinese companies such as Baidu and Tencent Holdings that were focusing on AI development. Nonetheless, these AI companies say they have stored enough Nvidia chips to continue operations.
Baidu has boldly stated that its latest artificial intelligence model can compete with OpenAI’s GPT-4. Meanwhile, Alibaba released Tongyi Qianwen 2.0, an AI model with understanding, copywriting, reasoning, and hallucination prevention functions.
Last October, the U.S. Department of Commerce unveiled AI chip restrictions for China, aimed at hindering China’s military advancements using the technology. BeInCrypto previously reported:
“The United States is concerned that advanced chips in Chinese hands could power more destructive weapons and military strategies that threaten U.S. national security.”
Read more: Cryptocurrency Project Security: A Guide to Early Threat Detection
Do you have anything to say about Chinese AI companies or anything else? Write to us or join the discussion in our Telegram channel. TikTok, Facebook or X (Twitter).
Latest information from BeInCrypto Bitcoin (BTC) analysis, Click here.
disclaimer
In compliance with Trust Project guidelines, BeInCrypto is committed to unbiased and transparent reporting. These news articles aim to provide accurate and timely information. However, before making any decisions based on this content, readers are encouraged to check the facts and consult with experts.