China's tech giants move AI model training overseas to tap Nvidia chips: FT

Major Chinese tech firms like Alibaba and ByteDance are reportedly heading to data centers in Southeast Asia for AI training. This clever strategy not only ensures access to critical Nvidia chips necessary for pioneering AI developments but also h...

Agencies
An Nvidia Corp. GB200 Grace Blackwell superchip
Top Chinese firms are training their artificial intelligence models abroad to access Nvidia's chips and avoid U.S. measures aimed at curbing their progress in advanced technology, Financial Times reported on Thursday.

Alibaba and ByteDance are among the tech firms training their newest large language models in Southeast Asian data centres, the report said, citing two people with direct knowledge of the matter.

Reuters could not immediately verify the report. Nvidia declined to comment on the report.


According to the report, there has been a steady increase in training in offshore locations after U.S. moved to restrict sales of the H20 chip in April.

Chinese companies rely on lease agreements for overseas data centres owned and operated by non-Chinese entities, the newspaper said, noting that DeepSeek, which gathered a large stock of Nvidia chips before the US export bans, was an exception with its model being trained domestically.

Deepseek is also collaborating with domestic chip manufacturers led by Huawei, to optimise and develop the next generation of Chinese AI chips, FT added.
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Alibaba, ByteDance, DeepSeek and Huawei did not respond to requests for comment.

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