China Telecom, one of the country’s state-owned telecom giants, has created two LLMs that were trained solely on domestically-produced chips.
This breakthrough represents a significant step in China’s ongoing efforts to become self-reliant in AI technology, especially in light of escalating US limitations on access to advanced semiconductors for its competitors.
According to the company’s Institute of AI, one of the models, TeleChat2-115B and another unnamed model were trained on tens of thousands of Chinese-made chips. This achievement is especially noteworthy given the tighter US export rules that have limited China’s ability to purchase high-end processors from Nvidia and other foreign companies. In a statement shared on WeChat, the AI institute claimed that this accomplishment demonstrated China’s capability to independently train LLMs and signals a new era of innovation and self-reliance in AI technology.
The scale of these models is remarkable. China Telecom stated that the unnamed LLM has one trillion parameters. In AI terminology, parameters are the variables that help the model in learning during training. The more parameters there are, the more complicated and powerful the AI becomes.
Chinese companies are striving to keep pace with global leaders in AI based outside the country. Washington’s export restrictions on Nvidia’s latest AI chips such as the A100 and H100, have compelled China to seek alternatives. As a result, Chinese companies have developed their own processors to reduce reliance on Western technologies. For instance, the TeleChat2-115B model has approximately 100 billion parameters, and therefore can perform as well as mainstream platforms.
China Telecom did not specify which company supplied the domestically-designed chips used to train its models. However, as previously discussed on these pages, Huawei’s Ascend chips play a key part in the country’s AI plans.
Huawei, which has faced US penalties in recent years, is also increasing its efforts in the artificial intelligence field. The company has recently started testing its latest AI processor, the Ascend 910C, with potential clients waiting in the domestic market. Large Chinese server companies, as well as internet giants that have previously used Nvidia chips, are apparently testing the new chip’s performance. Huawei’s Ascend processors, as one of the few viable alternatives to Nvidia hardware, are viewed as a key component of China’s strategy that will lessen its reliance on foreign technology.
In addition to Huawei, China Telecom is collaborating with other domestic chipmakers such as Cambricon, a Chinese start-up specialising in AI processors. The partnerships reflect a broader tendency in China’s tech industry to build a homegrown ecosystem of AI solutions, further shielding the country from the effects of US export controls.
By developing its own AI chips and technology, China is gradually reducing its dependence on foreign-made hardware, especially Nvidia’s highly sought-after and therefore expensive GPUs. While US sanctions make it difficult for Chinese companies to obtain the latest Nvidia hardware, a black market for foreign chips has emerged. Rather than risk operating in the grey market, many Chinese companies prefer to purchase lower-powered alternatives such as previous-gen models to maintain access to Nvidia’s official support and services.
China’s achievement reflects a broader shift in its approach to AI and semiconductor technology, emphasising self-sufficiency and resilience in an increasingly competitive global economy and in face of American protectionist trade policies.
