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Tech war: China advocates use of local AI chips over those from US powerhouse Nvidia

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AI chip users on the mainland have been informally advised to prioritise local alternatives, including those from Huawei, sources say

Chinese authorities have informally advised local companies to use domestic-made artificial intelligence (AI) chips over those from Nvidia, according to two sources familiar with the matter, as alternative suppliers on the mainland look to catch up with the US tech giant.

While there is no official ban on Nvidia’s China-tailored H20 graphics processing unit (GPU), the sources said mainland AI chip users have been informed to prioritise deployment of local alternatives, including those developed by Huawei Technologies.

A third source said H20 orders made by mainland enterprises had not been restricted as of August.

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Reports about China’s tacit rules against the American chip design firm first emerged in May, when US tech media The Information reported that regulators had asked local companies to cut back purchases of Nvidia chips and buy more from domestic suppliers like Huawei. A Bloomberg report last week said that China has called on local buyers to stay away from Nvidia.

The country’s Ministry of Industry and Information Technology, which oversees the domestic semiconductor and AI sectors, has not made any public announcement regarding that matter. The agency did not reply to a request for comment.

Nvidia did not also respond to a request for comment on the reported China restrictions.

The lack of any official confirmation about the matter somehow reflects the highly sensitive nature of the world’s AI chip market, which Taiwan Semiconductor Manufacturing Co chief executive Hsu Ming-chi has projected to grow annually at a much higher rate than the overall semiconductor industry.

When asked about his views on US trade restrictions on China, Nvidia chief executive Jensen Huang told American media in Washington on September 28 that the US government is “doing a wonderful job” in finding the right balance between controls and exporting American technology to the world.

“It is really terrific that the world is built on American standards,” Huang said, “Nvidia is an American company and our government and administration would love to see us succeed.”

Nvidia’s H20 remains popular among users in China, despite its reduced capacity to comply with US sanctions. Sales of the tailor-made chip have steadily picked up since its release earlier this year, as demand from large Chinese cloud services providers enabled them to access Nvidia’s technical support and maintenance services.

Nvidia is expected to deliver more than 1 million H20 GPUs in China this year, racking up US$12 billion in sales.

State-owned China Telecom is a major user of domestic-made artificial intelligence chips. Photo: Shutterstock

 

Still, adoption of alternative Chinese-made AI chips is growing.

State-owned carrier China Telecom, for example, said in a statement on September 28 that it has developed two large language models – the technology behind generative AI applications like ChatGPT – that were trained entirely on locally produced AI chips. While it did not identify the local supplier, China Telecom has a track record of partnering with Huawei.

A week earlier, Huawei had started offering samples of its Ascend 910C processor to large Chinese server companies for hardware testing and configuration, according to a South China Morning Post report. That put the company a step closer to the commercial roll-out of its upgraded version of the 910B, which is on par with Nvidia’s popular A100 chips.

Nvidia was initially barred from selling its A100 and H100 GPUs – two of the most in-demand chips for training and running AI models – to clients in China in August 2022. It later modified those chips to create the A800 and H800 to get around those restrictions, which Washington barred from being exported to China under tightened curbs announced last October.

Nvidia has since developed the H20, L20 and L2 GPUs to maintain its market share in China. Despite several rounds of US restrictions, Nvidia said China was its third-largest market in its financial year ended January 28.

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This article originally appeared on the South China Morning Post (www.scmp.com), the leading news media reporting on China and Asia.

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Autonomy: FG, govs, LG chairs sign implementation agreement

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Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi
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Autonomy: FG, govs, LG chairs sign implementation agreement

The Committee on Local Government Autonomy set up by the Federal Government has concluded its meetings and signed the technical document, which is expected to be transmitted to President Bola Tinubu soon.

The National President of the National Union of Local Government Employees, Hakeem Ambali, made this known in an interview with our correspondent on Tuesday.

In May, the Federal Government, represented by the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, filed a lawsuit to challenge the governors’ authority to receive and withhold federal allocations meant for Local Government Areas.

The suit sought to prevent state governors from unilaterally dissolving democratically elected local government councils and establishing caretaker committees.

The AGF argued that the constitution mandated a democratically elected local government system and did not allow alternative governance structures.

On July 11, 2024, the Supreme Court gave a landmark judgment affirming the financial autonomy of the 774 LGs in the country, noting that governors could no longer control funds meant for the councils.

The seven-member Supreme Court panel, led by Justice Garba Lawal, ruled that it was illegal and unconstitutional for governors to manage and withhold LG funds.

The apex court also directed the Accountant-General of the Federation to pay LG allocations directly to their accounts, as it declared the non-remittance of funds by the 36 states unconstitutional.

Also, on August 20, the Federal Government instituted a 10-member inter-ministerial committee to implement the Supreme Court’s ruling on local government autonomy.

The committee members include the Minister of Finance & Coordinating Minister of the Economy, Wale Edun; Attorney-General of the Federation & Minister of Justice, Lateef Fagbemi SAN; Minister of Budget & Economic Planning, Abubakar Bagudu; Accountant-General of the Federation; Oluwatoyin Madein and the Governor of the Central Bank of Nigeria, Olayemi Cardoso.

Others are the Permanent Secretary, Federal Ministry of Finance, Mrs Lydia Jafiya, the Chairman, Revenue Mobilisation Allocation & Fiscal Commission, Mohammed Shehu, and representatives of state governors and the local governments.

The committee’s primary goal is to ensure that local governments are granted full autonomy, allowing them to function effectively without interference from state governments.

Speaking to our correspondent on Tuesday, Ambali said, “The committee has held its final meeting and we have signed the technical document which will be transmitted to Mr President so by November end. It is expected that states will receive their allocations from FAAC. Also, I can tell you that the President is eager to receive that document. The committee worked within the time frame that was provided.”

Meanwhile, the National Union of Teachers has expressed fears about the capacity of LGs to pay the N70,000 new minimum wage to primary school teachers.

The NUT’s apprehension is hinged on the failure of the councils to implement the former N30,000 minimum wage.

Findings by our correspondent show that some LG workers in Nasarawa, Enugu, Zamfara, Borno, Yobe, and Kogi states, among others, have remained on the N18,000 minimum wage, which was approved in 2011.

However, the inability of the councils to implement the minimum wage has been blamed on the failure of the government to fully implement the LG autonomy.

Data obtained from the NUT revealed that teachers in LG primary schools were not paid the former minimum wage.

In Enugu State, for instance, LG workers were exempted from benefitting from the minimum wage though the state workers enjoyed the minimum wage salaries.

Also, Abia, Adamawa, Bauchi, Nasarawa, Kogi, Sokoto, Taraba, Yobe, Zamfara, Imo and Gombe States did not implement the old minimum wage for teachers at both state and local levels.

Confirming this, the General Secretary of the National Union of Teachers, Dr. Mike Ene said, “I can tell you that some states didn’t even implement the N18,000 minimum wage for teachers at the local level. Some governors refused to pay stating that the teachers are under the employment of the local governments.

“There should be no form of segregation when it comes to the implementation of the minimum wage. We all go to the same market. There is no specific market for local government workers. However, we commend all the governors who have come out to say that the minimum wage will be implemented across the board.

“Also, the NLC has vowed to shake the country by December should state governments fail to implement the minimum wage so I can tell you that the move by the NLC will force things into play.”

But NULGE president Ambali assured that the minimum wage would be implemented across the board when the LG autonomy commences.

“Over the years, governors have had one excuse and that is the fact that they always claimed that LGs are autonomous so they can’t negotiate minimum wage on behalf of LG workers. But the truth is that LGs were never autonomous during those periods.

“However, during the negotiation of the new minimum wage, the President brought in representatives of ALGON (Association of Local Government of Nigeria) to also negotiate and with the LG autonomy coming into play, that will be settled. The NLC has also given an ultimatum of December for all states as regards the payment of the minimum wage,” he added.

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North Korean defectors are already betraying Russia

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North Korean defectors are already betraying Russia © Unsplash
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A group of North Korean defectors has provided Ukrainian authorities with leaflets urging Kim Jong Un’s troops to lay down their arms and return home.

The group delivered handwritten notes and audio messages to Kyiv, outlining instructions for surrender and directions on how to reach the South Korean embassy in the Ukrainian capital, according to South Korean news agency Yonhap.

The Asian media outlet reports that the Ukrainian military could prompt a large number of North Korean soldiers to surrender “if proactive psychological warfare is employed,” as stated by Jang Se-yul, the group’s leader.

Washington has confirmed that 10,000 North Korean soldiers have been deployed to Kursk to help recapture the region, which has been partially controlled by Ukrainian forces following a surprise offensive this summer.

Since the start of the war in Ukraine, relations between Russia and North Korea have strengthened significantly, with the two nations signing a mutual defense pact last summer.

In exchange for sending troops, Pyongyang expects technological support from Moscow to advance and accelerate its nuclear weapons program.

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Biden sending aid for Ukraine to keep fighting next year, Blinken says

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In this photo provided by the Ukrainian Emergency Service on Nov. 13, 2024, rescue workers extinguish a fire of a building destroyed by a Russian strike in Brovary, Kyiv. © AP Photo
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US President Joe Biden will send “as much aid as possible” to Ukraine in its final few months in power, US Secretary of State Antony Blinken said on Wednesday during a trip to Brussels.

“President Biden has committed to making sure that every dollar we have at our disposal will be pushed out the door between now and 20 January,” when Donald Trump is due to be sworn in to power, Blinken said.

The US will “adapt and adjust” what latest equipment it is sending, without providing details on what military equipment the US plans to provide the country, which is nearing its third year of war against neighbouring Russia.

He added that NATO countries should focus their efforts on ensuring Ukraine “has the money, munitions and mobilised forces” to either fight effectively in 2025, or negotiate peace from a position of strength.

There is a shadow of political uncertainty surrounding how the US will approach its policy on the war following the inaugaration of Trump.

The US is currently the largest provider of military aid to Ukraine, upon which it is heavily reliant. Trump has not given concrete details on what his administrations approach to the war would be, but has said multiple times that he would consider halting funds to the war war-torn country.

The war in Ukraine has shown no signs of slowing down, with Russia launching a huge attack on the country’s capital, Kyiv, on Wednesday with a combination of missile and drones.

Eight regions across Ukraine were attacked in total on Wednesday, with Russia firing six ballistic and cruise missiles and 90 drones, according to the Ukrainian air force.

North Korean troops have also been confirmed to be present in the war, with the US State Department saying that most of them are fighting to drive Ukraine’s army off Russian soil in the Kursk region, where Ukraine launched a surprise incursion earlier this year.

Russia’s military has trained the North Korean soldiers in artillery, drone skills and basic infantry operations, including trench clearing, said State Department spokesman Vedant Patel on Tuesday.

Kyiv officials say that Russia has deployed around 50,000 troops in a bid to dislodge Ukrainian soldiers from the Kursk region.

Russia has in recent months been assembling forces for a counteroffensive in Kursk, according to the Institute for the Study of War think tank, though the timescale of the operation isn’t known.

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