China Nvidia rival Cambricon posts record profit, 4,000% revenue jump
China focuses on large language models in the field of artificial intelligence.
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The Chinese semiconductor Cambricon sent a record profit in the first half of the year. Nvidia Beijing is struggling because it appears to increase the domestic industry.
Cambricon is among the many companies competing to be an alternative to the American giant Nvidia in China when it comes to providing the necessary chips to train and run artificial intelligence applications and models.
In the first half of the year, Cambricon said that income increased by more than 4,000% annually and rose to 2.88 billion China Yuan ($ 402.7 million) and the net profit broke the record of 1.04 billion Yuan. Compared to Nvidia, which reported 44 billion dollars in February -Nisan quarter, the numbers remain small. Technology giant, today will later declare their second quarter -quarter earnings.
Nevertheless, Cambricon’s increase in income emphasizes how the technology companies in China seek potential alternatives to Nvidia, given the constant threat they can be cut from American technology.
Earlier this year, Nvidia was prevented from selling the Paren Back H20 chip to China. Since then, he has been allowed to continue to export to China, but he should share 15% of his revenues with the US government from sale to the country.
In the meantime, China’s local companies Nvidia’nın H20 chips reportedly courage to buy.
Chinese technology giants use the Nvidia hardware, where they can take their hands as well as local chips, which helps companies like Cambricon.
According to S&P Capital IQ, Cambricon shares increased more than twice this year and added $ 40 billion to the market value. The total value of the company is approximately 80 billion dollars.
Nvidia’s power was not only in its hardware, but also in the software that developers are used to using. Cambricon said on Wednesday that he had developed the software offer and was working on the new generation of hardware.
However, China’s Nvidia opponents face many obstacles when it comes to defeating competition. While technologies are far behind Nvidia’s, China’s long -term appearance seems to be even more difficult due to export controls that cut China from the most advanced chipset techniques by preventing progress in the domestic AI chip efforts.
