China has allocated more than 43.5 billion yuan ($6.12 billion) to build data centers, according to Liu Liehong, head of China’s National Data Office, Reuters quoted a state news agency as saying at an industry conference in the southwestern city of Guiyang.
China’s move follows the US semiconductor embargo against the country, which restricted the import of advanced artificial intelligence technology from companies such as Nvidia Corp NVDA, Advanced Micro Devices, Inc AMDAnd Micron Technology, Inc MUciting national security concerns.
In 2022, Beijing launched plans to build eight large data center hubs in the western regions, using the region’s energy resources to transmit computing power to economic centers.
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According to Liu, the eight data center hubs have attracted total investment of over 200 billion yuan.
According to recent reports, Chinese AI developers are bypassing the US embargo using blockchain technology to access advanced Nvidia chips. Despite the sanctions, Chinese tech giants continue to aggressively pursue their AI ambitions.
Nvidia claimed the China embargo has had no significant impact as US big tech continues to push ahead with its AI ambitions. Due to the restrictions, Chinese tech giants like Alibaba Group Holding BABA has shown significant impact on its AI ambitions.
Nvidia beat second-quarter expectations of $28.68 billion with revenue of $30.04 billion. Adjusted earnings per share of 68 cents beat expectations of 64 cents.
China reportedly wants to support technology start-ups and other small businesses by using their intellectual property as collateral. The country also expressed solidarity with the domestic electric vehicle industry, a major consumer of advanced semiconductor technology.
Price promotion: NVDA shares closed 2.10% lower at $125.61 on Wednesday.
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