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China offers AI computing ‘vouchers’ to its underpowered start-ups

Chinese tech giants are hogging scarce cloud resources to develop generative AI models as US restrictions bite

China is taking steps to level the playing field for its artificial intelligence start-ups, as the country’s tech giants hog AI-training computing resources already squeezed by US chip restrictions.

At least 17 city governments, including the largest, Shanghai, have pledged to provide “computing vouchers” to subsidise AI start-ups facing rising data centre costs as supplies of crucial chips become more scarce.

The vouchers will be typically worth the equivalent of between $140,000 and $280,000, according to official announcements. They can be used for time in AI data centres to train and run the companies’ large language models (LLMs) that understand and generate natural language, and other content, to perform a wide array of tasks. 

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