Alibaba’s AI Chip Contends with NVIDIA’s H20; Already Training AI Models Amidst Growing Competition in China for Team Green

In a significant development, major Chinese technology companies are increasingly shifting toward domestic computing solutions. Notably, Alibaba’s self-developed Zhenwu chip is reported to offer performance levels comparable to NVIDIA’s H20, marking a pivotal moment in the race for AI chip supremacy.

Alibaba and Baidu Embrace In-House AI Chips, Moving Away from NVIDIA

China’s commitment to reducing reliance on Western technology has led AI firms such as Huawei, Alibaba, and Baidu to create tailored solutions for specific workloads, both for inference and model training. According to a report by The Information, Alibaba and Baidu have made strides in utilizing their proprietary AI chips for model training. The Zhenwu chip from Alibaba, in particular, is touted to demonstrate performance that rivals NVIDIA’s H20 AI chip, underscoring a monumental achievement for the company.

But Alibaba’s AI chip, for instance, is now good enough to compete with Nvidia’s H20 chip, the scaled-down chip designed for the Chinese market, according to three employees who have used Alibaba’s Zhenwu chip.– The Information

While it is true that Chinese companies have historically lagged behind NVIDIA in terms of technological advancement and manufacturing capabilities, the rapid progress towards self-reliant solutions illustrates the nation’s capabilities. The development of the Zhenwu chip is a notable benchmark, not only for Alibaba but also for peers like Baidu, which is leveraging the Kunlun P800 chip for similar tasks. This shift signifies that NVIDIA’s technological dominance in the Chinese market is now under substantial threat.

Huawei Preps Ascend 910C To Tackle NVIDIA's H100 In China's Domestic AI Market — Image Credits: Huawei

At present, NVIDIA finds itself grappling with challenges in accessing the Chinese AI market amid regulatory hurdles imposed by Beijing. Reports indicate that NVIDIA is considering the introduction of a ‘Blackwell-based’ solution for domestic markets, tentatively named the B40 AI chip. However, plans remain under wraps, largely dependent on negotiations with the U. S.government regarding the sale of high-end technology to China.

Source & Images