tech
CNBC's The China Connection newsletter: China learns to build without Nvidia
Chinese companies are increasingly seeking Nvidia alternatives to develop self-sufficient systems, even if their own tech remains in the early stages.
TL;DR
- Chinese companies are actively seeking alternatives to Nvidia chips to achieve technological self-sufficiency.
- Cost savings and the potential for greater scale are major drivers for adopting China-made chips.
- Robovan startup Zelostech plans to use multiple chip suppliers, including domestic ones, instead of solely relying on Nvidia.
- Major Chinese companies like BYD, Nio, and Xpeng are developing their own semiconductors for driver-assist systems.
- The shift extends beyond vehicles, with Chinese AI developers optimizing models for homegrown hardware.
- Nvidia's revenue from mainland China and Hong Kong is decreasing, prompting the company to focus investments elsewhere in Asia.
- China's push for domestic chip development aims to improve technology through real-world application and feedback.
- Nvidia is exploring collaborations in China, such as with humanoid startup Unitree, to maintain a presence in 'physical AI'.