Tencent and Baidu are adapting to U.S. chip restrictions in the artificial intelligence race, according to reports.
Tencent’s Approach
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Stockpiling Chips: Tencent, the operator of China’s biggest messaging app WeChat, has stockpiled chips purchased previously.
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Future Model Development: The company’s president, Martin Lau, stated that this stockpile could be utilized for future generations of its models without needing additional purchases of new GPUs.
"We have a pretty strong stockpile," Lau said. "We can achieve good training results with a smaller group of such chips compared with American companies who believe GPU clusters need to expand to create more advanced AI."
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Software Optimization: Lau noted that Tencent is employing software optimization techniques to enhance efficiency, allowing the same amount of GPUs to execute functions more effectively.
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Exploring Smaller Models: The company is investigating smaller models that do not require the extensive computing power that larger models do.
"I think there are a lot of ways in which we can fulfill the expanding and growing inference needs," Lau said. "And we just need to sort of keep exploring these venues and spend probably more time on the software side rather than just brute force buying GPUs."
Baidu’s Strategy
- Full-Stack Solution: Baidu is taking a different approach by utilizing its full-stack solution to address chip curb challenges. This includes:
- Cloud computing infrastructure
- AI models
- Applications based on those models, such as the ERNIE chatbot
Market Context
- According to data from research firm IC Insights, Nvidia accounted for about 70% of the global GPU market last year.
- The U.S.-China trade tensions have led to Washington tightening curbs on key semiconductors due to concerns over China’s military-civilian fusion strategy in areas including artificial intelligence (AI).
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