Chinese internet behemoth Baidu has placed an order for artificial intelligence chips from Huawei rather than its regular supplier, Nvidia, signalling a significant departure from chips produced in the US. As an alternative to Nvidia chips, Baidu ordered 1,600 Huawei 910B Ascend AI chips in August.
The action was taken in advance of new regulations from the US government that went into effect in October and placed more stringent limitations on the sale of AI chips, including Nvidia chips, to China. By October, Huawei had already supplied more than 60% of the chips that Baidu had ordered—roughly 1,000 chips. The overall projected value of the order is an estimated RMB 450 million ($61.83 million) and Huawei is anticipated to complete the remaining chip deliveries by the end of this year.
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