Tencent's Clever Move to Access NVIDIA's Top AI Chips

Tencent, a major player in China's tech scene, has found a smart way to get its hands on NVIDIA's powerful Blackwell B200 AI chips. Even though the U. S. has banned the direct export of these chips to China, Tencent is using a clever loophole.

The Loophole

They are renting the chips through a Japanese company called Datasection. This deal is worth over $1.2 billion and gives Tencent access to a big chunk of NVIDIA's latest tech.

Datasection's Role

Datasection has a lot of NVIDIA's Blackwell AI chips, including the B200 and B300 models. These chips are mainly located in Japan and Australia.

The Struggle for Advanced AI

Chinese tech companies are struggling to train advanced AI models without NVIDIA's chips. So, big names like Tencent, Alibaba, and Baidu are turning to this rental option. It's a legal but tricky way to get around U. S. restrictions.

The Appeal of Renting

Renting compute power is becoming a popular choice for Chinese companies. An analyst from Bernstein Research says that renting might be more appealing than buying NVIDIA's AI chips in China. The reason? The computing power they get through renting is much better than what's available domestically.

Performance Comparison

Even with the H200 chip available in China, the B200 and B300 models still outperform it. This shows that China is still getting access to cutting-edge American technology.

The Ongoing Battle

This situation highlights the ongoing battle between tech advancement and geopolitical restrictions. While China is working on developing its own AI chips, companies like Tencent are finding creative ways to stay ahead in the AI race. It's a reminder that in the world of technology, there's always a way to adapt and innovate.