China’s Alibaba and Baidu have started using internally designed chips to train their AI models, partly replacing those made by Nvidia, reports Reuters. Alibaba has been using its own chips for smaller AI models since early this year, while Baidu is experimenting with training new versions of its Ernie AI model using its Kunlun P800 chip, the report said.
The move is a significant shift in China’s tech and AI landscape—where companies largely rely on Nvidia’s powerful processors for AI development—and would further dent Nvidia’s China business.
“The competition has undeniably arrived … We’ll continue to work to earn the trust and support of mainstream developers everywhere,” an Nvidia spokesperson said in response to the report.