Nvidia, a leading semiconductor producer, has partnered with the Indonesian government and telecom provider PT Indosat Ooredoo Hutchison to establish a new AI center in Indonesia.
According to Budi Arie Setiadi, the communication minister of Indonesia, the AI center will have a value of $200 million and will be situated in Surakarta city, Central Java.
Setiadi mentioned that the AI center will either house telecommunication infrastructure or serve as a human resource center.
Construction of the center is slated to commence this year, with Surakarta Mayor Gibran Rakabuming Raka stating that the city’s selection was based on its well-prepared human resources and existing 5G infrastructure.
Nvidia had previously signed a memorandum of understanding with the Indonesian government in January 2022, pledging to train lecturers and over 20,000 university students in AI skills over five years to bolster the nation’s AI talent pool.
Since the signing of the memorandum, the AI market has nearly doubled in value, reaching $241.80 billion in 2023, according to recent data.
Nvidia’s initiative in Indonesia aligns with its broader strategy of expanding its presence in the Southeast Asia region, driven by the surge in demand for generative AI tools.
In Singapore, Nvidia has collaborated with local telecom company Singtel for a new data center, and with the Singapore Institute of Technology for a new AI center.
Other major AI developers like Google and Microsoft have also been investing billions of dollars in AI initiatives worldwide, establishing data centers and training programs in various countries.
The push for capable AI models extends to the crypto space as well, with Tether Operations Limited announcing an expansion of its AI focus and recruitment efforts for top-tier AI talent.
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