How China is challenging Nvidia’s AI chip dominance

For decades, the United States has dominated the world technology market. But China wants to change it.

The second largest economy in the world invests huge amounts of money in artificial intelligence (AI) and robotics. It is important to note that Beijing also invests significant funds in the production of high -class chips that lead these advanced technologies.

Last month, Jensen Juan, the chief of the giant Ai Chip, based in the Nvidia Silicon Valley, warned that China was just “nanoseconds in the United States in the development of chips.

So can Beijing correspond to American technology and violate its reliability on imported high -quality chips?

Chinese Deepseek sent shocks through the world of technology in 2024 when he launched Open in Catgpt OpenaiField

The announcement of an unknown startup was impressive for a number of reasons, not least because the company said that training costs much less than the leading AI models.

They say Created using a much smaller number of high -quality chips than its competitorsIN And its launch temporarily reduced the market value of NVIDIA based on the silicone valley.

And the impulse in the technical sector of China continued. This year, some of the country's large technical companies made it clear that they strive to take on NVIDIA and become the main advanced suppliers of chips for local companies.

In September, the Chinese state media reported that the new chip announced by Alibaba may correspond to the performance of the NVIDIA H20 semiconductor when using a smaller amount of energy. H20 is scaling processors created for the Chinese market in accordance with the rules of US export.

Huawei also imagined that, according to him, they were the most powerful chips, along with a three -year plan, to challenge the Domination of NVIDIA in the AI ​​market.

The Chinese technical giant also said that he would make his projects and computer programs available to the public in China In an attempt to draw Firms on their dependence on American products.

Other Chinese chips developers also concluded large contracts with large enterprises in the country. Metax supplies advanced chips for such a state telecommunications operator, China Unicom.

Another hot potential contender for NVIDIA is Cambricon Technologies based on Beijing.

Over the past three months, his shares registered in Shanghai have increased more than doubled, since investors put up to argue that he would benefit from the desire of Beijing for Chinese companies to use local high -class chips.

The Tencent, which owns Super App Wechat, is another famous technical giant who listened to the government’s call to use Chinese chips.

There was also no shortage of exhibitions supported by the state, promoting Chinese technological companies, trying to attract investors.

“The competition has undoubtedly arrived,” the representative of NVIDIA told the BBC NVIDIA representative in response to requests for recent progress achieved by Chinese firms.

“Clients will choose the best technological glass for managing the most popular commercial applications and open source models in the world. We will continue to work to earn the trust and support of the main developers everywhere. ”

Nevertheless, some experts warn that the claims submitted by Chinese chip manufacturers should be accepted with a pinch of salt from the absence of publicly available data and consistent testing tests.

According to computer scientists, Javad Hai-Yiyya, China semiconductors work similarly to the United States in forecasting AI, but do not have enough in complex analytics, which checked both American and Chinese chips.

“The gap is clear, and it is certainly reduced. But I do not think that this is what they will catch up in the short term. ”

On September, the BG2 Technology and Business podcast, in September, Jensen Huang from Nvidia emphasized the strengths of China’s technical sector, attributing it to hardworking and extensive talents, intensive internal competition and progress in creating chips.

“This is a bright entrepreneurial, high-tech, modern industry,” he said, urging the United States to compete “for its survival”.

His assessment will probably be welcomed by officials in Beijing.

The country has long become a world leader in the field of technology, partly in order to reduce its dependence on the West.

For many years, China has invested significant funds that President Xi Jinping calls “high -quality development”, which covers industries from renewable energy sources to AI.

Even before the return of US President Donald Trump to the White House, China spent tens of billions of dollars in the framework of its efforts to transform its extensive economy from the “world factory” for the main products into the house of advanced industries.

Anon The continuing war of tariffs with America Trump Just made this mission more urgent.

Xi vowed to make his country more independent and not depend on “anyone's gifts.”

Mr. Juan also warned that the United States should freely trade with China or risk giving it an advantage in the artificial intelligence race.

This happens against the background of Beijing, which uses more pressure on NVIDIA, because last month he launched an antimonopoly investigation in the company.

But the approach led by China can also be an obstacle to innovation if everyone in this sector is focused only on a “common goal”, said Professor Computer Chia-Lin Yang from the Taiwan National University.

This may complicate destructive ideas to break mold, she added.

The Chinese chip industry has not yet overcome criticism that its products can be less convenient for the user than products such as Western competitors as NVIDIA.

Professor Jan believes that these problems can soon be solved by a huge number of Chinese employees of the qualified technology industry.

“You cannot underestimate the ability of China to catch up.”

She called the recent announcements of China about the sector of chips as a “negotiation chip” in her monthly negotiations on tariffs with the United States.

According to Dr. Javad, Beijing seeks to put pressure in Washington to sell his advanced equipment or the risk of losing his position in such a large market.

These ads project power from China, even if he probably still wants to buy American technologies, he added.

Most experts agree that China still depends on the United States for the most powerful chips, at least at the moment.

Beijing needs access to some high -quality American technologies for more advanced projects and so that it does not remain behind, said the engineer of the semiconductor of Raghavendra Anjanappa.

It is really that China can reduce its dependence on American chips in less common tools, but it does not have “unprocessed chips” to teach more complex AI systems, Mr. Raghavender said.

Despite a number of breakthroughs, China is still lacking in highly developed supplies, which have long been created in the USA, South Korea and Taiwan.

The United States also introduced export restrictions, as it is trying to slow down the development of advanced technologies of China, including Washington's decision to block the access of Beijing to high -class nvidia chipsField

The United States “struck China exactly where its dependence is the deepest,” said Mr. Raghavender.

“But China is not far off in a grandiose scheme, and it may take only five years to be independent of the United States.”