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Chinese companies rush to increase computing power as AI surges

By Chethana Janith, Jadetimes News

 
Jadetimes, Chinese companies rush to increase computing power as AI surges.
Image Source : VCG

The recent boom in the artificial intelligence (AI) industry has brought increased attention to the computing-related sector, including cloud computing and chips. With the rapid growth of AI applications in various industries, there is a growing demand for more powerful computing systems to support these applications.


Officials and industry leaders attending an ongoing industry expo have expressed confidence in the domestic development of advanced computing capabilities, as Chinese enterprises have made significant advances in the sector, relying on their experience and technology prowess.


The China International Big Data Industry Expo 2024, which opened on Wednesday in Guiyang, Southwest China's Guizhou Province, attracts many Chinese technology companies eager to capture a piece of the booming domestic AI-related industry.


Wang Chenghong, a representative of Henan Kunlun Information Technology Co, told the Global Times that the company has its own high-performance AI servers and self-developed technology for integrating AI with general computing.


In addition to establishing related infrastructure such as data centers, regions across China have rolled out measures to boost computing power infrastructure development.


Xu Lin, Party secretary of Guizhou Province, announced plans to further develop intelligent computing industrial clusters with a primary emphasis on AI technology.


The province aims to cultivate industry-specific large language models, enhance data center infrastructure and broaden the utilization of data elements across various sectors.


The computing power is reshaping global economic landscapes at an unprecedented pace, said Gao Wen, an academician at the Chinese Academy of Engineering, at a forum on Thursday.


To strengthen advanced computing capabilities and foster new quality productive forces, China has invested more than 43.5 billion yuan ($6.12 billion) in a nationwide project to build computing data centers, Liu Liehong, head of the National Data Administration, said at the expo.


China's massive investment in computing comes as it faces increasing restrictions from the US, which has limited exports of some advanced computing products, including those from industry leader Nvidia in recent years, according to Reuters.


As Washington steps up controls on chip exports to China, the US chipmaker is still actively seeking opportunities to collaborate with Chinese enterprises and benefit from their rapid progress.


While China was a "significant contributor" to the data center revenue in the past quarter, "it remains below levels seen prior to the imposition of export controls," Nvidia CFO Colette Kress said during an earnings call on Thursday. "We continue to expect the China market to be very competitive going forward."


China's success in self-reliant semiconductor production hinges on surmounting technological hurdles, navigating geopolitical complexities, and fostering a domestic AI chip supply that is both cutting-edge and economically viable, experts noted.

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