Alibaba and Baidu Accelerate Adoption of In-House AI Chips in China

What Happened

Chinese tech giants Alibaba and Baidu are adopting their own custom-designed AI chips in a significant departure from relying on foreign chipmakers like Nvidia. This strategic shift comes amid escalating trade tensions and export restrictions involving the US and China. By investing in proprietary semiconductor technology, both companies aim to achieve greater self-sufficiency in powering their AI cloud services and applications. Their new chips are being deployed in data centers and for AI model training. This move shows China\’s determination to compete globally on artificial intelligence innovation and reduce its vulnerability to international supply chain disruptions.

Why It Matters

The adoption of in-house AI chips by Alibaba and Baidu marks a critical moment for China\’s tech sector, strengthening the country\’s position in the global AI race. It may accelerate local AI ecosystem growth and trigger innovation by other firms, further challenging US chip dominance. Read more in our AI News Hub