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Tech war: China sees glut of AI data centres as GPU mismatches exacerbate weak demand

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Total computing power in China accounted for 26 per cent of the world’s total as of June, trailing only the US, but CPU usage rates are low

China’s rush to build a nationwide network of artificial intelligence (AI) data centres is running the risk of creating an oversupply of computing power, experts and industry professionals said.

Data from CCID Consulting, a government-backed think tank focused on technology, shows that more than 250 internet data centres have either been built or are under construction in China as of June, as local governments, state-owned telecommunications network operators and private investors pour money into the “new infrastructure”.

Many of these artificial intelligence (AI) computing facilities are also located in areas far from the nation’s technology centres.

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Total computing power in China reached a whopping 246 Eflops as of June this year, according to data published in September by the China Academy of Information and Communications Technology (CAICT), an institute affiliated with the Ministry of Industry and Information Technology. Eflops is a unit for measuring the speed of a computer system.

That accounted for 26 per cent of the world’s total, trailing only behind the US, according to CAICT.

However, the central processing unit (CPU) use rate of computing resources provided by privately-held servers is less than 5 per cent, according to a research report on the public cloud issued by China’s State Information Centre (SIC), a group affiliated with the National Development and Reform Commission. Experts warn of an impending glut of computing power as many data centres sit idle due to lack of demand.

“In the past few years, with the buildout of new infrastructure, some government-backed companies did build some data centres which now sit idle,” said Helen Fang, head of industrial research at HSBC. “These centres tend to not be located in or around first-tier cities, or are too small in size to meet mainstream demand.”

China’s provincial governments are rushing to support new data centres to spur the local economy, according to an employee of a mainland AI chip start-up, who declined to be named. There is little consideration given to how the data centre could operate after it is built, the person added.

Shan Zhiguang, a director at the State Information Centre, warned in April that many jurisdictions in the country are rushing to build data centres, based on the suppliers’ sales agenda instead of market demand. “The demand for computing power in China is still limited due to the lack of big models-based killer applications,” Shan said. “If built too early and too much, it may create a glut,” he told Chinese media 21st Century Business Herald.

Amid US sanctions that restrict Chinese enterprises from buying advanced chips from suppliers like Nvidia, many of these government-backed projects were given tacit orders to prioritise the use of domestic CPUs, graphics processing units (GPUs) and memory chips over foreign counterparts. That would only aggravate the situation because domestic-made hardware from various brands is more difficult to configure, especially if connected to form large computing clusters consisting more than 10,000 GPUs, according to experts.

Visitors learn about cloud computing at Alibaba’s APSARA Conference 2024, Sept. 19, 2024. Photo: Xinhua

 

In one example, China Mobile’s newest data centre is in Harbin, capital of northeast Heilongjiang province, and runs on 18,000 domestic-made GPUs. Separately, Jixi, a traditional coal-mining city in the province, inked a deal in May with a Hainan construction company to invest 14 billion yuan (US$1.98 billion) to build a data centre using only Chinese suppliers, including Tencent Cloud, AI chip start-up EnFlame, and Chinese chip giant Sugon.

Government-built data centres are often required to use domestic hardware and software together, according to a former manager of SenseTime who works on generative AI-related projects. Domestic GPUs are only compatible with certain models, this person said. So if a company wants to train or use foreign models it has to use Nvidia cards, not government-owned computing resources, the person added.

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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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The wheels of an aircraft continue to spin and move immediately after takeoff.

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The wheels of an aircraft continue to spin and move immediately after takeoff.
Depending on the diameter of the tires, they may continue to spin between 1,500 and 2,000 rpm.
The captain must stop this rotation before the tires settle into the box, a task that is accomplished by different systems depending on the level.

Here is a brief explanation of how the wheels of an aircraft stop spinning

Most modern aircraft have automatic braking technology and devices to stop the wheels from spinning after takeoff, eliminating the need for pilots to use the brakes, as the automatic braking system works immediately after takeoff.
Passengers can feel the resulting vibration if they are sitting in the front and hear some intermittent noise immediately after takeoff.

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Telcos push 100% tarrif hike, await NCC approval

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Nigerian telecommunications companies said they proposed a 100 per cent tariff hike to the regulator, the NCC, across voice, data and digital and are awaiting approval.

The proposal, which has been submitted, aims to address rising operational costs, including inflation and increased service delivery expenses.

The disclosure was made by the Chief Executive Officer, MTN Nigeria, Karl Toriola, during an interview on Arise TV on Thursday.

However, the CEO said that it remains uncertain whether the Nigerian Communications Commission will approve the proposal.

According to Toriola, the proposed tariff hike is necessary for the sustainability of the industry, which has been facing significant financial pressures due to rising operational costs.

“We’ve put forward requests of approximately 100 per cent tariff increases to regulators. I doubt they’re going to approve that quantum of increases because they are very, very sensitive to the current economic situation in the country,” Toriola said.

Despite the challenges, Toriola expressed optimism that regulators would make the right decision, taking into account the realities of the sector.

The CEO emphasised that the focus is on ensuring the long-term sustainability of the industry, rather than short-term profitability.

“I believe we’re all on the same side, the policymakers, the regulators, our Chairman of ALTON, Gbenga Adebayo, and the industry. We’re united because we share concerns about a few fundamental issues. First, human rights, are critical to driving any economy. Without a sustainable industry, the broader economy and the well-being of the people will be negatively impacted.”

 

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Top secret lab is developing the UK’s first quantum clock

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A top secret lab is developing a super-precise ‘quantum clock’ that could revolutionize British intelligence.

This super-accurate timekeeping device, to be rolled out by 2029, will allow more precise navigation and surveillance on Royal Navy ships and RAF planes.

It will also ‘enhance the accuracy of advanced weapons’ like guided missiles and give British computer boffins the edge over online adversaries like cyber criminals.

The clock’s precision will be so refined that it will lose less than one second over billions of years, allowing scientists to measure time at an unprecedented scale.

It is the first device of its kind to be built in the UK and will be deployable on military operations in the next five years, according to Defence Science and Technology Laboratory (DSTL).

‘This first trial of advanced atomic clock represents a significant achievement in the UK’s quantum technology capabilities,’ said DSTL chief executive Paul Hollinshead.

‘The data gathered will not only shape future defence effort but is also a signal to industry and academia that we are serious about exploring quantum technologies for secure and resilient operational advantage.’

Quantum clocks use quantum mechanics – the physics of matter and energy at the atomic and subatomic scale – to keep time with unprecedented accuracy by measuring energy fluctuations within atoms.

Developed at the top-secret Defence Science and Technology Laboratory, (Dstl) the quantum clock will improve British intelligence and surveillance by decreasing the reliance on GPS technology, which can be disrupted and blocked by adversaries

 

To be rolled out by 2029, the quantum clock will allow more precise navigation and surveillance on Royal Navy ships and RAF planes. Pictured, Royal Navy Duke class Type 23 anti-submarine frigate HMS Portland

 

Quantum clocks are even more accurate that the ‘atomic clocks’, of which there are approximately 400 already in operation around the world.

The UK already has an atomic clock at the National Physical Laboratory in London, but this quantum clock will be the country’s first.

Nick France, CTO of Sectigo, told MailOnline: ‘A quantum clock is a type of atomic clock – essentially a super-accurate timekeeping device.

‘Atomic clocks work by measuring the resonant frequency of atoms, whereas quantum clocks measure very small energy changes (‘quantum fluctuations’) in these atoms, leading to increased accuracy even over super-accurate atomic clocks.

‘Atomic clocks currently are incredibly accurate anyway, but a quantum clock has accuracy levels where only a single second is lost in billions of years of operation.’

The British quantum clock will be ‘the first device of its kind to be built in the UK’, said the UK government in a statement, but it will not be a world first.

Back in 2010, the University of Colorado at Boulder developed a quantum clock with the US National Institute of Standards and Technology.

However, key barriers to deploying quantum clocks are their size – current models come in a van or in a car trailer and are about 1,500 litres in volume.

Atomic clocks use certain resonance frequencies of atoms to keep time with extreme accuracy. Pictured, atomic clock at the University of Colorado Boulder in the US

 

Back in 2010, the University of Colorado at Boulder developed a quantum clock with the US National Institute of Standards and Technology (pictured)

 

Pictured, NIST-F1, source of the official time of the USA

 

Potential of quantum clocks

  • Enable more precise and independent navigation systems, reducing reliance on GPS satellites, which are vulnerable to jamming or destruction in conflict scenarios.
  • Secure communications systems, such as encrypted military networks, which depend on highly synchronised timekeeping.
  • Enhance the accuracy of advanced weapon systems, like guided missiles, which rely on accurate timing to calculate trajectories and coordinate attacks.
  • Allow Armed Forces to gain an edge over adversaries in timing-critical operations, especially in areas like cyber warfare, where milliseconds can make a difference.

Source: DSTL

Just like most quantum equipment, quantum also have sensitivity to environmental factors such as heat and air molecules, limiting their transport between different places.

‘Quantum clocks are not small like watches or alarm clocks,’ France added.

‘These are devices that in current implementations can be large, even room-sized devices.

‘However, improvements in technology will decrease the size of these devices making them more portable.’

Apart from just ultra-precise timekeeping, quantum clocks could transform global navigation systems by helping satellite communications and aircraft navigation.

According to DSTL, their quantum clock will enable more precise and independent navigation systems, reducing reliance on GPS satellites, which are vulnerable to jamming or destruction in conflict scenarios.

It will improve communications systems, such as encrypted military networks, which depend on highly synchronised timekeeping, as well as boosting the accuracy of advanced weapon systems like guided missiles, which rely on accurate timing to calculate trajectories and coordinate attacks.

What’s more, British Armed Forces will get an edge over adversaries in ‘timing-critical operations’, such as cyber warfare, where milliseconds can make a difference.

Coordinated Universal Time (UTC) is defined by sophisticated, ultra-precise ‘atomic clocks’ around the world, which tick precisely and continuously. Experts are pictured here with the NIST-F2 atomic clock in the US

 

Cyber warfare refers to the actions by a nation-state or international organization to attack and attempt to damage another nation’s computers or information networks.

France told MailOnline: ‘Super-accurate timekeeping is important to governments and militaries to enable accurate navigation (using GPS or similar technologies) of planes and ships, but also guidance of weapons systems such as missiles.

‘Equally important to the military as well as civilians is secure communications.

‘Much of the secure communications for governments and the military relies on accurate time sources to function.

‘But equally these accurate clocks are useful for more civilian applications and general internet security, even securing your personal data as it’s transmitted around the internet.’

Companies and governments around the world are keen to cash in on the huge potential benefits that the spooky effects of quantum technology could bring.

Google last month unveiled a new quantum computing chip it said could do in minutes what it would take leading supercomputers 10 septillion years to complete.

Eventually, such a chip could power a ‘commercial’ quantum computer that could be purchased by members of the public and used in labs, offices and even homes.

These ultra-powerful machines, which use the spooky effects of quantum physics, could do everything from speed up AI, solve climate changeand discover lifesaving drugs.

WHAT IS THE ATOMIC CLOCK?

Atomic clocks have a timekeeping mechanism that use the interaction of electromagnetic radiation with the excited states of certain atoms.

The devices are the most accurate system we have for measuring time, with consistent standards applied.

They are the primary standards for international time distribution services, and uses to control wave frequency for TV, GPS and other services.

The principle is founded in atomic physics, measuring the electromagnetic signal that electrons in atoms emit when they change energy levels.

Modern versions cool atoms to near absolute zero by slowing the atoms down with lasers. With temperature of atoms driving their accuracy.

Every few years a ‘leap second’ is added to atomic clocks, by effectively stopping them for a second, to keep them in line with Earth’s rotation speed.

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