China Cuts Costs to Charge Up AI Chip Sector
In a bid to strengthen its domestic artificial intelligence (AI) chip industry, China has launched an initiative to provide low-cost electricity to technology companies, according to a report by the Financial Times cited by Reuters.
The report states that major data centers across the country are being offered subsidies covering up to half of their electricity bills.
Local administrations have also introduced new incentive programs to support leading tech giants such as ByteDance, Alibaba, and Tencent. These companies have recently faced financial strain due to high energy costs, following Beijing’s restrictions on purchasing Nvidia’s AI chips.
China’s move aims to accelerate homegrown AI chip production and reduce reliance on foreign technologies. However, Reuters noted that it has not yet independently verified the Financial Times report.
DBTech/BMT/OR
