tencent defies US chip export ban in AI push
Shenzhen, Friday, 6 December 2024.
Tencent continues its AI advancements despite the US export ban on high-end chips crucial for AI development. Researchers from the University of California, Berkeley, found evidence that Tencent still uses these chips in its latest AI models, suggesting potential loopholes in the US ban. This situation could affect companies like NVIDIA that rely on partnerships and market access in China. The findings raise questions about the effectiveness of the ban and its impact on the tech industry. Tencent’s persistent development demonstrates the resilience and adaptability of Chinese tech giants in the face of international restrictions. As the US tightens semiconductor exports, companies in China may need to further localize their supply chains to mitigate these challenges. This development could influence the global AI landscape, prompting discussions on strategic partnerships and regulatory measures.
Market implications of continued AI development
Tencent’s ability to maintain AI development despite US restrictions has significant market implications. The company recently launched HunYuanVideo, a text-to-video tool, on December 4, 2024 [2][3], demonstrating its continued technological advancement. This development suggests that US export controls may have less impact than initially anticipated on Chinese tech giants’ AI capabilities [1]. Industry experts note that Chinese companies have successfully localized much of their supply chain in recent years [2], potentially minimizing the effect of Washington’s restrictions.
Global competition and talent acquisition
Tencent is actively strengthening its AI position through strategic talent recruitment. The company, alongside ByteDance and Alibaba, is participating in the prestigious NeurIPS conference [2][3], known as the ‘Olympics of AI.’ This aggressive talent acquisition strategy comes as industry experts, including Clement Delangue, predict China could become the global AI leader as early as 2025 [5]. However, US semiconductor export restrictions remain a potential limiting factor [5].
Regulatory and competitive landscape
The effectiveness of US export controls is under scrutiny as Chinese tech firms demonstrate resilience. Research from the University of California, Berkeley, reveals Tencent’s continued use of advanced chips in its recent AI models [1]. This situation creates uncertainty for Western semiconductor companies [GPT]. Chinese authorities are responding by calling for increased cooperation within the domestic chip supply chain, as announced on December 5, 2024 [2].