Nvidia’s $200M AI Center Targets Indonesia Amid Global Competition

Nvidia, a prominent semiconductor producer in the field of artificial intelligence (AI), has unveiled its plan to establish a new AI center in Indonesia. The company will be partnering with the Indonesian government and telecom provider PT Indosat Ooredoo Hutchison for this venture. The AI center, valued at $200 million, will be located in Surakarta city in the Central Java region. The center will either serve as a telecommunication infrastructure hub or a human resource center. Construction of the facility is expected to commence this year.

The selection of Surakarta city as the location for the AI center was based on its well-prepared human resources and 5G infrastructure, according to the mayor, Gibran Rakabuming Raka. In January 2022, Nvidia had signed a memorandum of understanding with the Indonesian government. Under this agreement, Nvidia pledged to train lecturers and more than 20,000 university students in AI skills over a span of five years, with the aim of enhancing the nation’s pool of AI talent. This commitment was made prior to the release of OpenAI’s groundbreaking ChatGPT chatbot in November 2022, which sparked a surge of interest in AI.

Since the signing of the memorandum, the AI market has experienced significant growth, nearly doubling in value from $134.89 billion in 2022 to $241.80 billion in 2023, as per recent data. Nvidia was approached by for further details regarding the development in Indonesia. This move by Nvidia to expand its presence in Southeast Asia mirrors its strategy of capitalizing on the rising demand for generative AI tools. In Singapore, the company has partnered with local telecom company Singtel for a new data center, and it has also collaborated with the Singapore Institute of Technology on an AI center.

Other major players in the AI field such as Google and Microsoft have also been heavily investing in AI initiatives worldwide, establishing data centers and training programs in countries like Germany, France, and Spain. The race to acquire capable AI models has also extended to the cryptocurrency sector, as Tether Operations Limited, the company behind the Tether stablecoin (USDT), recently announced plans to expand its focus on AI and recruit top-tier AI talent.

Junia Hedrick

Junia Hedrick

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