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Baidu’s Struggle with High-Performance GPUs Amid US-China Trade Dispute

In the trade dispute between China and the USA, the US government is implementing export restrictions on high-tech products, which are not entirely effective. According to a report by The Register, the Chinese search engine provider Baidu made it clear when presenting its latest quarterly figures that Nvidia’s powerful AI GPUs were missing from the development of corresponding applications.

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Baidu CEO Robin Li does not see the plans for its own ChatGPT competitor called Ernie, which still needs one to two years of development, at risk. However, it seems that chip reserves of US origin can still be used for this purpose.

Instead, an AI architecture consisting of a total of four layers with its own framework and application layer will ensure greater independence in the future. It was implemented independently and requires less powerful hardware.

However, according to The Register, Li does not see the chips achieving the performance level of US competitors. He sees Baidu as well prepared to compete with national competitors. However, especially with regard to the offerings around AWS, Azure, and Google Cloud, the necessary hardware performance ultimately seems to be missing.

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