SK Hynix Considers U.S. ADR Listing to Boost Shareholder Value Amid Rising AI Chip Demand 
SK Hynix Labeled “Investment Warning Stock” After Extraordinary 200% Share Surge 
Trump’s Approval of AI Chip Sales to China Triggers Bipartisan National Security Concerns 
Mizuho Raises Broadcom Price Target to $450 on Surging AI Chip Demand 
EssilorLuxottica Bets on AI-Powered Smart Glasses as Competition Intensifies 
US Charges Two Men in Alleged Nvidia Chip Smuggling Scheme to China 
Australia Enforces World-First Social Media Age Limit as Global Regulation Looms 
IBM Nears $11 Billion Deal to Acquire Confluent in Major AI and Data Push 
Moore Threads Stock Slides After Risk Warning Despite 600% Surge Since IPO 
SpaceX CEO Elon Musk Denies Reports of $800 Billion Valuation Fundraise 
Adobe Strengthens AI Strategy Ahead of Q4 Earnings, Says Stifel 
China Adds Domestic AI Chips to Government Procurement List as U.S. Considers Easing Nvidia Export Curbs 
Trump Criticizes EU’s €120 Million Fine on Elon Musk’s X Platform 
SpaceX Insider Share Sale Values Company Near $800 Billion Amid IPO Speculation 
SK Hynix Shares Surge on Hopes for Upcoming ADR Issuance 
U.S.-EU Tensions Rise After $140 Million Fine on Elon Musk’s X Platform 
In anticipation of rising tech tensions between the US and China, leading Chinese technology companies have been amassing high-performance graphic processing units (GPUs), especially those from Nvidia, to ensure their AI development projects remain uninterrupted.
Strategic Moves by Tech Titans
Companies like Baidu, ByteDance, Tencent, and Alibaba have been proactive in securing these essential AI components. According to the Financial Times, these firms collectively placed orders for around 100,000 A800 processors from Nvidia, scheduled for delivery this year, in a deal worth approximately $4 billion. Furthermore, they have also committed to buying $1 billion worth of GPUs for 2024 delivery.
Baidu's CEO, Robin Li, during an earnings call, highlighted the company's readiness with enough AI chips to support its ChatGPT-like Ernie Bot for the next one or two years. He acknowledged that while inference tasks need less powerful chips, their current reserves and other alternatives should suffice for various AI-native applications for end-users.
Impact on AI Development Pace
Li also noted that difficulties in acquiring the most advanced chips could slow AI development in China. This has led Baidu and other tech giants to actively seek alternatives to Nvidia's GPUs.
AI's Bold Move in the LLM Market
Despite these challenges, there are success stories like 01.AI, established by renowned investor Kai-Fu Lee. The company managed to acquire a significant number of high-performance inference chips and has already cleared its debts after securing a valuation of $1 billion. This showcases that startups, with the right funding, can still make impactful entries into the large language model (LLM) market.
Baidu's Continued Advancements
With its GPU reserve, Baidu recently launched Ernie Bot 4. Li claimed this model is comparable in capability to GPT-4, underscoring Baidu's competitive stance in the AI industry.
Chinese tech giants are strategically stocking up on Nvidia GPUs to maintain their AI development momentum amid escalating US-China tech tensions.
