Baidu, the country’s web search giant, has chosen to buy a batch of homegrown AI chips from Huawei Technologies. Amidst the political pressures and trade constraints from the US, this deal shows a pivot towards local tech solutions, a trend that could reshape the tech landscape.

An order of 1600 chips has been placed, estimated at around $61 million

With an order of 1,600 of Huawei’s Ascend 910B AI chips, Baidu is preparing for a future less reliant on foreign technology, specifically Nvidia’s AI chips, which have been the industry’s gold standard. The deal, estimated at around 450 million yuan ($61.83 million), is modest compared to the massive orders usually placed with Nvidia, but it’s the significance that counts here – it’s a step towards technological self-sufficiency for China.

baidu

Previously, Baidu wasn’t known to use Huawei’s AI chips, making this a noteworthy partnership. Although Huawei’s chips aren’t yet on par with Nvidia’s in performance, they represent the most advanced AI chips China has to offer. This shift isn’t just about Baidu’s preference; it’s a response to stringent US rules that have barred Nvidia from selling some of its top AI chips to Chinese companies.

The collaboration between Baidu and Huawei isn’t new. They have been working together since 2020, making Baidu’s AI platforms run smoothly on Huawei’s hardware. Even though Baidu has its own line of Kunlun AI chips, the reliance on Nvidia’s technology has been significant until the US restrictions prompted a change in strategy.

While analysts see US restrictions as a door opening for Huawei to claim more of the domestic market, the question remains: Can China accelerate its chipmaking prowess to not just compete but lead in the tech arena? This deal might just be a glimpse into a future where China’s tech independence is not just an aspiration but a reality.

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