Jakarta, CNBC Indonesia – Saudi Arabia and the United Arab Emirates (UAE) do not seem to want to be left behind by China in terms of developing artificial intelligence (AI) technology. The two countries in mainland Arabia are also buying up chips made by Nvidia, a company from the United States (AI).
Previously, Chinese internet giants (Baidu, ByteDance, Tencent, Alibaba) were reported to have purchased Nvidia chips with a total value of US$ 1 billion or around Rp. 15 trillion. This follows concerns over the banning of chip technology exports proclaimed by US President Joe Biden.
The export ban does not actually apply to Saudi Arabia and the UAE. However, these two countries are also starting to be ambitious to build an AI ecosystem so that they are not left behind by other developed countries.
The Saudis bought 3,000 units of Nvidia H100 chips, while the UAE also bought thousands of chips, quoted from investing.com, Tuesday (15/8/2023). Until now, Nvidia has not opened its voice about the report.
This news was sniffed out right when Nvidia Corporation closed Monday’s trading session this week with an increase of more than 7%. The reason is that the chip conflict that is heating up between the US and China is said to make seasoned manufacturers like Nvidia sell well.
Countries that are building an AI ecosystem are flocking to order chips from Nvidia. This is because Nvidia is one of the early players producing chips for AI.
In fact, at the beginning of this year, Nvidia’s shares skyrocketed to include US$ 1 trillion worth of issuers, thanks to investor optimism about AI technology.
The application of AI itself is still gaining pros and cons. There are concerns that this technology will take away human jobs, facilitate the spread of disinformation, and trigger more massive cyber attacks. AI regulations are still being discussed in several countries, including Indonesia.
Nevertheless, it is believed that the innovations brought will revolutionize human life in the future. Therefore, the development of AI continues and it is predicted that it will begin to reach its maximum potential in 2027.
China is buying up this much US chip to become the king of AI