"The US has dominated the global technology market for decades. But China wants to change that. The world's second largest economy is pouring huge amounts of money into artificial intelligence (AI) and robotics. Crucially, Beijing is also investing heavily to produce the high-end chips that power these cutting-edge technologies. Last month, Jensen Huang - the boss of the global AI chip industry leader, Nvidia - warned that China was just "nanoseconds behind" the US in chip development."
"China's DeepSeek sent shockwaves through the tech world in 2024 when it launched a rival to OpenAI's ChatGPT. The announcement by a relatively unknown startup was impressive for a number of reasons, not least because the company said it cost much less to train than leading AI models. It was said to have been created using far fewer high-end chips than its rivals, and its launch temporarily sank Silicon Valley-based Nvidia's market value."
"This year, some of the country's big tech firms have made it clear that they aim to take on Nvidia and become the main advanced chip suppliers for local companies. In September, Chinese state media said a new chip announced by Alibaba can match the performance of Nvidia's H20 semiconductors while using less energy. H20s are scaled-down processors made for the Chinese market under US export rules."
China is investing heavily in artificial intelligence, robotics, and the production of high-end semiconductors to lessen reliance on imported chips. DeepSeek launched an AI model rivaling leading systems that reportedly required far fewer high-end chips and cost much less to train, temporarily reducing Nvidia's market value. Major Chinese firms announced chips claiming comparable performance to Nvidia's H20 processors while using less energy. Huawei unveiled its most powerful chips and a three-year plan to challenge Nvidia, offering designs and software publicly in China to attract domestic firms. Other Chinese developers secured major contracts with large businesses.
Read at www.bbc.com
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