No Chips, No Problem: China Is Dropping Cash Vouchers Worth $280K To Ramp Up Its AI Dreams
Portfolio Pulse from Benzinga Neuro
China is offering 'computing vouchers' worth $140,000 to $280,000 to AI startups to mitigate the impact of U.S. chip restrictions. This initiative aims to support the training and operation of large language models (LLMs) amid challenges such as contract cancellations by cloud computing services due to U.S. controls. Nvidia (NASDAQ:NVDA) chips are being repurposed for AI tasks due to these restrictions. Additionally, China plans to introduce a subsidy program for AI groups using domestic chips and is developing an alternative to Big Tech's data centers.
March 04, 2024 | 11:15 am
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Nvidia chips are being repurposed for AI tasks in China due to U.S. chip restrictions, indicating a potential increase in demand for Nvidia's gaming chips in the short term.
The repurposing of Nvidia gaming chips for AI tasks in China due to U.S. restrictions suggests a short-term increase in demand for these chips. This could positively impact Nvidia's stock as the company benefits from unexpected demand in a constrained market. However, the long-term impact may depend on the duration of the restrictions and China's success in developing domestic alternatives.
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