**Summary:**
– Alibaba is reportedly planning to order between 40,000 and 50,000 AMD MI308 AI chips.
– The MI308 offers enhanced performance and cost-effectiveness compared to NVIDIA’s H20.
– NVIDIA is also set to ship its H200 chips to China early next year.
In a significant move, Alibaba is considering a substantial order of 40,000 to 50,000 MI308 AI chips from AMD. This strategic decision underscores the growing demand for advanced AI technology in the Chinese market.
The AMD MI308 chip has been specifically designed for compliance with the unique requirements of the Chinese market. In July, AMD received an export license for this chip from the U.S. government, in conjunction with NVIDIA’s H20.
When comparing technical specifications, the MI308 sets itself apart with its impressive capabilities. The chip boasts up to 192GB of HBM3 video memory, significantly eclipsing NVIDIA’s H20, which initially came with 96GB and later upgrades only increased it to 141GB. This substantial memory advantage allows the MI308 to handle more data-intensive applications, making it an appealing choice for companies focusing on AI applications.
Moreover, the unit price of the MI308 stands at approximately $12,000, which is around 15% cheaper than that of NVIDIA’s H20. This cost advantage is complemented by AMD’s MI308’s favorable reputation regarding security, as it currently sidesteps the concerns that have surrounded NVIDIA’s chips. This combination of price and performance positions the MI308 as a compelling alternative, even in the event that NVIDIA’s more potent H200 receives export approval for the Chinese market.
On the other hand, NVIDIA has recently informed its Chinese clientele that it plans to begin shipping its H200 chips to China before the upcoming Lunar New Year, which is scheduled for mid-February. Sources within the industry suggest that NVIDIA aims to utilize its existing inventory to fulfill these initial orders, estimating shipments of approximately 40,000 to 80,000 H200 units.
The competitive landscape in the AI chip sector is becoming increasingly dynamic, with companies like Alibaba leveraging technological advancements to enhance their operations. As demand for AI capabilities continues to escalate, the decisions made around chip procurement will play a pivotal role in shaping industry trends.
In conclusion, Alibaba’s potential order of AMD’s MI308 AI chips not only highlights the growing competitiveness in the AI market but also emphasizes the strategic considerations that companies must weigh in terms of performance, security, and cost-effectiveness.
