Microsoft's High-Stakes Meeting in Shanghai: What's Next for AI in China's Business Hub?

During a meeting on Tuesday, Shanghai authorities expressed to Microsoft Corp's MSFT President Brad Smith their desire for the company to enhance the use of artificial intelligence technology in local businesses. 

This request was made by Chen Jining, Shanghai's Communist Party Secretary, as part of the city's ongoing efforts to advance its technological capabilities, Reuters reports. 

Additionally, Shanghai is open to collaborating with Microsoft on exploring governance frameworks and standards related to technology.

Meanwhile, Nvidia Corp NVDA is testing the HGX H20 chip with Chinese server suppliers, but it likely has only about 20% of the computing power of Nvidia's H100. 

Reportedly, Chinese LLM developers sought alternatives as Nvidia's AI chip fell short of expectations.

Nvidia proposed to release a specialized AI chip for China by the first quarter of 2024 as the U.S. embargo on China kicked in. 

Also Read: GPT Store's Launch on Hold: Is OpenAI's Leadership Shuffle to Blame for the 2024 Wait?

Price Action: MSFT shares are up 0.22% at $369.95 on the last check Tuesday.