Alibaba’s Chairman Joe Tsai has acknowledged that China is trailing behind Western countries, particularly the United States, in the race for dominance in artificial intelligence (AI). In a conversation with Nicolai Tangen, CEO of Norway’s Norges Bank Investment Management, on the podcast ‘In Good Company,’ Tsai highlighted China’s approximate two-year lag behind American firms like Open AI.
Attributing part of this lag to US restrictions on exporting sophisticated chips to China, Tsai noted that China has been significantly affected by these constraints. The restrictions, imposed last October, have hindered companies like Nvidia from exporting high-end chips to China, impacting various sectors, including Alibaba’s Cloud business.
While acknowledging short and medium-term challenges resulting from these restrictions, Tsai expressed confidence in China’s ability to develop its own high-end Graphics Processing Units (GPUs) critical for AI expansion. Despite the hurdles, Tsai mentioned ongoing efforts within Alibaba to develop GPUs and explore sourcing options from other players.
Tsai also addressed the broader issue of chip shortages affecting many Chinese tech companies, noting that inventory stockpiling has mitigated immediate concerns. He differentiated between the computing requirements for training AI models and the less demanding requirements for AI applications, highlighting the adaptability of inference processes to multiple chip options.
Beyond AI and technological challenges, Tsai shed light on the complexities of doing business in the US as a Chinese company. He highlighted concerns around data privacy and cybersecurity, which have influenced Alibaba’s strategic decisions, particularly in consumer-facing ventures in the US market.
Moreover, Tsai underscored the importance of understanding Alibaba’s role in facilitating global trade, emphasizing its contributions to facilitating commerce between countries like the US, China, France, and Germany. He called for a nuanced perspective on China, rejecting categorical assessments and advocating for recognition of China’s enduring economic significance and industrious workforce.
In conclusion, Tsai urged against dismissing China as an investment destination, emphasizing the resilience and potential of the Chinese economy to positively impact global dynamics in the long term.
SOURCE:INTERNET