Chinese cloud firms have previously told Nvidia they don’t want its slower AI chips and that they would prefer using homegrown chips from companies such as Huawei

Local governments in Shanghai and Anhui will fund a variety of semiconductor-related projects this year — ranging from the development of DRAM chips to building facilities for chipmaking and its tools

The deal comes at a time when OpenAI chief Sam Altman is seeking between $5-7 trillion for an AI chip venture in a bid to bolster global chipmaking capacity