China Tech Giants Shift AI Training Overseas to Access Nvidia Chips

What Happened

Chinese tech companies such as Baidu, ByteDance, Tencent, and Alibaba are relocating artificial intelligence model training from China to foreign data centers, according to the Financial Times. This move is aimed at securing access to Nvidia’s advanced graphics processing units (GPUs), which have become restricted due to US export controls targeting the Chinese tech sector. The effort involves using subsidiaries and partners in Southeast Asia and other international regions to circumvent those restrictions and maintain competitiveness with global AI development. These companies are reportedly training large language models (LLMs) and other AI systems abroad, where they can leverage state-of-the-art hardware unavailable domestically.

Why It Matters

This development underscores the escalating global competition over AI capability and the strategic importance of advanced semiconductors like Nvidia GPUs. It illustrates how export controls are prompting Chinese tech leaders to adapt rapidly, driving further globalization of AI R&D and potentially shifting innovation patterns. Read more in our AI News Hub