[HO CHI MINH CITY] US chipmaker Nvidia has entered an agreement with the Vietnamese government to establish a research and development centre for artificial intelligence (AI) in the South-east Asian country.
A separate AI data centre will also be developed by the military-run telecommunications company Viettel Group using Nvidia technology.
The deal was announced on Thursday (Dec 5) during the meeting between Vietnam’s Prime Minister Pham Minh Chinh and Nvidia chief executive Jensen Huang in Hanoi.
The Business Times learned that the US tech giant has also finalised its acquisition of VinBrain, a Hanoi-based AI health-tech company backed by Vietnam’s largest private conglomerate, Vingroup.
Over the past quarter, Vingroup has reduced its holding of equity interest in Vinbrain, from about 49.7 per cent in Q2 to 18.2 per cent in Q3 this year.
Since Huang’s first visit to Vietnam last December, Nvidia has announced partnerships with various leading tech companies in the South-east Asian country.
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They include a deal to develop a US$200 million AI factory in Vietnam with FPT – a Hanoi-based tech firm.
It is set to receive 127 Nvidia HGX H100 server systems this month to equip its AI facilities, after receiving the green light from the US authorities, chief executive of FPT Smart Cloud Le Hong Viet told The Business Times in an interview in November.
Nvidia AI chips are subject to the US’ export-control rule, which imposes additional licensing requirements for exports of critical technologies to some countries, including Vietnam.
However, Viet said that there is a need for Vietnam to set up more new-generation data centres as the existing ones are traditional, and have yet to be optimised or upgraded for the efficient deployment of AI infrastructure.
Earlier this month, the Vietnamese prime minister urged the US to lift its high-tech export restrictions on the South-east Asian nation, which is classified among countries controlled for national security reasons and a non-market economy by the Western country.
These have taken place in the context of the deepening ties between Vietnam and the US, which elevated their bilateral relationship to a comprehensive strategic partnership last September.
Huang visited Vietnam after his trips to Thailand and Indonesia over the past month to support AI infrastructure in these South-east Asian countries. Last year, Nvidia also announced a partnership to build a RM20 billion (S$6.1 billion) AI data centre in Malaysia.
