Nvidia, a prominent semiconductor manufacturer in the field of artificial intelligence (AI), has unveiled plans to establish a new AI center in Indonesia. This initiative is being undertaken in collaboration with the Indonesian government and telecom provider Indosat Ooredoo Hutchison.
The AI center, valued at $200 million, will be situated in Surakarta city in the Central Java region, as announced by Budi Arie Setiadi, the country’s communication minister, on April 4. Setiadi revealed that the center will serve as either a hub for telecommunication infrastructure or a human resource center.
Construction of the AI center is scheduled to commence in 2024. The choice of Surakarta city was influenced by its well-prepared human resources and 5G infrastructure, according to Gibran Rakabuming Raka, the mayor of Surakarta.
In January 2022, Nvidia signed a memorandum of understanding with the Indonesian government, committing to train lecturers and over 20,000 university students in AI skills over a period of five years, with the aim of enhancing the nation’s pool of AI talent. This agreement was made prior to the AI frenzy that ensued after OpenAI introduced its groundbreaking ChatGPT chatbot in November 2022.
Recent data indicates that the AI market has experienced significant growth, with its value nearly doubling from $134.89 billion in 2022 to $241.80 billion in 2023.
Cointelegraph sought further details from Nvidia regarding the development in Indonesia.
Nvidia’s expansion into Indonesia aligns with its strategy of expanding its influence in the Southeast Asia region, following its record-breaking revenues driven by the rising demand for generative AI tools. In Singapore, Nvidia has partnered with local telecom firm Singtel for the establishment of a new data center, and it has also collaborated with the Singapore Institute of Technology on a new AI center.
Major AI developers such as Google and Microsoft have also allocated substantial investments to AI initiatives worldwide, establishing data centers and training programs for local communities in countries like Germany, France, and Spain.
The scramble for capable AI models extends even to the cryptocurrency sector, as Tether, the blockchain and cryptocurrency company behind the Tether (USDT) stablecoin, announced an expansion of its AI focus and recruitment efforts to attract top-tier AI talent.
In conclusion, the establishment of the AI center in Indonesia by Nvidia, in partnership with the Indonesian government and Indosat Ooredoo Hutchison, represents a significant step in advancing the nation’s AI capabilities. The global market for AI continues to thrive, attracting major players and prompting investments in various countries and industries.