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Baidu chip-design unit Kunlunxin wins over $139 million orders from China Mobile suppliers
BEIJING, Aug 22 (Reuters) - Chinese semiconductor design firm Kunlunxin, which is backed by Baidu (9888.HK), opens new tab, said it had won chip orders worth over a billion yuan ($139 million) for telecoms firm China Mobile's (600941.SS), opens new tab AI projects, as authorities push for domestic alternatives to Nvidia (NVDA.O), opens new tab. Kunlunxin will supply artificial intelligence chips compatible with Nvidia's CUDA software platform to firms such as H3C Technologies and telecoms equipment maker ZTE that are first-tier suppliers to China Mobile, it said in a statement released late on Thursday. Tech giant Baidu owns 59% of Kunlunxin, Chinese corporate registry Qichacha shows. A Huawei-related company also won part of the orders requiring hardware compatibility with Huawei's Compute Architecture for Neural Networks (CANN), an equivalent of CUDA, according to tender results published by China Mobile earlier. Many developers rely on Nvidia's CUDA platform to build AI and other apps, which is optimised for Nvidia Graphics Processing Units. In April, Baidu said it had successfully started running a cluster of 30,000 of its self-developed, third generation P800 Kunlun chips, which can support the training of models similar to Chinese AI startup DeepSeek. Like Huawei's Ascend chips, Baidu's Kunlun chips are among a dozen of Chinese-made alternatives competing for market share with Nvidia GPUs. Baidu's and other domestic GPUs have better CUDA compatibility than Ascend, which is crucial for reducing extra costs for developers to shift from Nvidia's ecosystem. ($1 = 7.1840 Chinese yuan renminbi) Reporting by Che Pan and Brenda Goh; Editing by Clarence Fernandez and Emelia Sithole-Matarise Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Technology Brenda Goh Thomson Reuters Brenda Goh is Reuters' Shanghai bureau chief and oversees coverage of corporates in China. Brenda joined Reuters as a trainee in London in 2010 and has reported stories from over a dozen countries.
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Baidu-backed chip designer Kunlunxin wins millions of yuan worth of China Mobile orders
NVIDIA Corporation is the world leader in the design, development, and marketing of programmable graphics processors. The group also develops associated software. Net sales break down by family of products as follows: - computing and networking solutions (77.8%): data center platforms and infrastructure, Ethernet interconnect solutions, high-performance computing solutions, platforms and solutions for autonomous and intelligent vehicles, solutions for enterprise artificial intelligence infrastructure, crypto-currency mining processors, embedded computer boards for robotics, teaching, learning and artificial intelligence development, etc.; - graphics processors (22.2%): for PCs, game consoles, video game streaming platforms, workstations, etc. (GeForce, NVIDIA RTX, Quadro brands, etc.). The group also offers laptops, desktops, gaming computers, computer peripherals (monitors, mice, joysticks, remote controls, etc.), software for visual and virtual computing, platforms for automotive infotainment systems and cloud collaboration platforms. Net sales break down by industry between data storage (78%), gaming (17.1%), professional visualization (2.5%), automotive (1.8%) and other (0.6%). Net sales are distributed geographically as follows: the United States (44.3%), Taiwan (22%), China (16.9%) and other (16.8%).
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Kunlunxin, Baidu's semiconductor design firm, has won significant orders for AI chips compatible with Nvidia's CUDA platform, highlighting China's push for domestic alternatives in the AI chip market.
Kunlunxin, a Chinese semiconductor design firm backed by tech giant Baidu, has secured orders worth over a billion yuan ($139 million) for China Mobile's AI projects 1. This significant contract win underscores China's ongoing efforts to develop domestic alternatives to Nvidia's dominant position in the AI chip market.
The company will supply AI chips compatible with Nvidia's CUDA software platform to first-tier suppliers of China Mobile, including H3C Technologies and ZTE 1. This move is particularly noteworthy as it demonstrates Kunlunxin's ability to provide chips that can integrate with existing AI development ecosystems, potentially easing the transition for developers from Nvidia's products.
Chinese authorities are actively encouraging the development and adoption of homegrown AI chip solutions. This initiative is part of a broader strategy to reduce dependence on foreign technology, particularly in critical sectors like artificial intelligence. Kunlunxin's success in this tender process highlights the progress being made by Chinese firms in this highly competitive field.
Baidu, which owns 59% of Kunlunxin, has been making significant strides in AI chip development. In April, the company announced the successful deployment of a cluster of 30,000 of its self-developed, third-generation P800 Kunlun chips 1. This cluster is capable of supporting the training of AI models comparable to those developed by Chinese AI startup DeepSeek, showcasing the potential of domestic chip designs.
Kunlunxin's chips are among a dozen Chinese-made alternatives vying for market share against Nvidia GPUs. Notably, Baidu's Kunlun chips, along with other domestic GPUs, offer better CUDA compatibility compared to some competitors like Huawei's Ascend chips 1. This compatibility is crucial for reducing the costs and complexity associated with developers transitioning from Nvidia's ecosystem.
The success of Kunlunxin and other Chinese chip designers could have significant implications for the global AI chip industry, currently dominated by Nvidia. As Chinese firms improve their chip designs and compatibility with existing software platforms, they may increasingly challenge Nvidia's market position, particularly within China and potentially in other markets seeking alternatives to US-based technology.
This development occurs against the backdrop of ongoing technological competition between the United States and China. As restrictions on high-end chip exports to China tighten, the success of domestic chip designers like Kunlunxin becomes increasingly important for China's technological ambitions, especially in the field of artificial intelligence.
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