Chinese tech giants ByteDance (TikTok), Tencent, Baidu and Alibaba have all failed to take full advantage of Nvidia’s high-performance computing (HPC) offerings. The news comes from Chinese media, where only ByteDance, the creator of TikTok, reports that the entire Chinese market has already caught up with the amount ordered by NVIDIA in 2022 (on a pure dollar basis).
Chinese publications Jitway ByteDance has revealed that it has already placed orders for Nvidia GPUs worth about $1 billion in 2023 so far. That equates to about 100,000 units split between Nvidia’s A100s, which were ordered before the US government told Nvidia to stop selling its highest performing HPC cards to China. August 2022) and the H800 card – the last series number corresponding to the hopper-based custom accelerator he built by Nvidia to comply with export regulations – a weakened cameo of the H100 accelerator. Nerfed or not, Nvidia’s Average Selling Price (ASP) appears to stay around $10,000 per accelerator.
Nvidia has made a stir by saying it lost about $400 million when the export restrictions were first imposed, and that such losses could hamper the development of the H100 chip. However, as the U.S. government changed the export ban he said in September to allow NVIDIA to cram in some of the additional shipments (and revenue) needed for development, it remains to be seen if the development of the H100 accelerator has actually been completed. don’t understand. H100.
The prospects are truly staggering when you consider the remaining Chinese tech giants, which are significantly increasing their investments in HPC hardware. If ByteDance alone has already surpassed Nvidia’s annual sales in China, what can we say about the Chinese market? said that China’s own distribution chain could not keep up. This at least explains why ByteDance and Alibaba reportedly said he was negotiating directly with Nvidia for a product (as if he’d let the H800’s existence allow for doubts about it). to).
Increased investment is clear and part of the motivation. From China’s point of view, China cannot allow the West to compete with complete dominance in her AI field. China’s interest isn’t only fueled by promises that AI will bring her $4.4 trillion to the global economy (According to McKinsey it, by the way). Remember, there are also political and sociological choices here. In other words, China’s state administration institutions (like those in the West) need a constant supply of high-tech solutions. We may forget them in the chaotic soup of generative AI and large language models, but AI is also powering things like CCTV analytics and facial recognition technology. (just as provided through the system) Nvidia’s FaceDetect technologyby the way).
This point is also interesting. Nvidia’s H800 cards just started production in March of this year, so not much of it was delivered by his Nvidia. H800 deliveries are actually expected to continue throughout the year. It’s unclear if the reported $1 billion figure refers to shipments that have already been delivered or to orders-only shipments. Of course, ByteDance spent $3 billion last year just buying back stock from investors. With so much money flying around, what’s another $1 billion or $2 billion?
I’m sure you can relate. we can all do that.
