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Ant Group Shifts to Domestic Chips for AI Training

Highlights

  • Ant Group adopts Chinese semiconductors to train AI models.

  • Using domestic chips reduces costs and dependence on U.S. technology.

  • Challenges include maintaining stable performance with lower-spec chips.

Kaan Demirel
Last updated: 3 April, 2025 - 1:09 pm 1:09 pm
Kaan Demirel 2 months ago
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Ant Group is increasingly adopting Chinese-made semiconductors to train its artificial intelligence models. This strategic move aims to lower operational costs and reduce reliance on U.S.-based technology. By leveraging domestic chip suppliers, including those associated with Alibaba and Huawei Technologies, Ant Group is positioning itself to navigate the evolving technological landscape more effectively.

Contents
How is Ant Group utilizing Chinese-made semiconductors?What impact does this shift have on Ant Group’s AI development?What challenges does Ant Group face in this transition?

In the past, Ant Group primarily relied on imported high-performance GPUs like Nvidia’s H800 for AI model training. The current shift marks a significant pivot towards self-sufficiency in critical technology infrastructure. This transition reflects a broader trend among Chinese tech firms striving to mitigate the impact of export restrictions on advanced semiconductors.

How is Ant Group utilizing Chinese-made semiconductors?

The company employs chips from domestic suppliers to train large language models using the Mixture of Experts (MoE) method. This approach divides tasks among specialized components, enhancing efficiency. Ant Group’s models, Ling-Plus and Ling-Lite, have shown performance comparable to those trained with Nvidia’s H800 chips, according to internal reports.

What impact does this shift have on Ant Group’s AI development?

Adopting domestic semiconductors allows Ant Group to reduce training costs, which were previously around 6.35 million yuan using high-performance hardware. The optimized method has lowered the cost to approximately 5.1 million yuan per trillion tokens. This cost-effectiveness enables the company to scale its AI applications across various industries, including healthcare and finance.

What challenges does Ant Group face in this transition?

Despite progress, Ant Group encounters challenges in maintaining stable performance during model training. Minor adjustments to hardware or model structures can lead to instability and spikes in error rates. Ensuring consistent performance while using lower-specification chips remains a critical focus for the company.

Ant Group’s initiative aligns with China’s broader strategy to enhance technological independence. By investing in domestic semiconductor capabilities, the company not only cuts costs but also strengthens its resilience against geopolitical tensions. This move may influence other tech firms in China to explore similar pathways, fostering a more self-reliant tech ecosystem.

“If you find one point of attack to beat the world’s best kung fu master, you can still say you beat them, which is why real-world application is important,”

Robin Yu, chief technology officer of Shengshang Tech

expressed, highlighting the significance of practical applications in competitive technology development.

The advancement also opens avenues for Ant Group to deploy its AI models in various sectors effectively. By offering open-source models with 16.8 billion and 290 billion parameters, respectively, Ant Group is contributing to the broader AI community. These developments could spur innovation and accessibility in AI technology both within China and globally.

Navigating the balance between cost efficiency and performance stability will be crucial for Ant Group’s continued success. The company’s efforts to optimize AI training costs while maintaining competitive performance levels demonstrate a potential blueprint for other organizations facing similar technological and economic challenges.

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Kaan Demirel
By Kaan Demirel
Kaan Demirel is a 28-year-old gaming enthusiast residing in Ankara. After graduating from the Statistics department of METU, he completed his master's degree in computer science. Kaan has a particular interest in strategy and simulation games and spends his free time playing competitive games and continuously learning new things about technology and game development. He is also interested in electric vehicles and cyber security. He works as a content editor at NewsLinker, where he leverages his passion for technology and gaming.
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