Cryptocurrency News

Baidu to Address the Shortage of Chips for Crypto, Cars, and Gaming

Towards the end of the year 2020, the global gaming, cryptocurrency, and automotive community has been plagued by a shortage of chips. As the demand for cryptocurrencies has increased dramatically, the crypto-mining sector has started investing heavily in mining rigs.

The cryptocurrency mining community has reportedly been acquiring mining rigs in order to mine currencies in masses. The cryptocurrency that has triggered an enormous amount of demand in GPUs and chips is Bitcoin (BTC).

Ever since the bull-run being displayed by Bitcoin (BTC), the bitcoin-mining community has been experiencing significant growth. As Bitcoin (BTC) now requires a lot of hash rate in order to generate even a single coin, a single mining rig is not enough to mine Bitcoin (BTC) in a short amount of time.

Therefore, the demand for bitcoin-mining rigs has increased enormously, meaning that more chips are required for this purpose. Even a single mining rig requires several high-end graphics cards put together in order to generate bitcoin (BTC).

This has led to a huge shortage of chips that are not only limited to the mining sector but also the gaming and the automotive sector.

Out of all the sectors, the most affected sector is automobiles that need a lot of silicon semiconductors. According to the reports, the shortage of chips is the very reason why General Motors has ended up shutting down more than one of its car manufacturing plants.

As per confirmation, General Motors had to shut down three of its plants due to the lack of chips. On top of that, the car manufacturing giant also reported that the manufacturing of vehicles on all of its other plants has also slowed down.

In order to deal with this problem, Baidu, which is an internet giant from Chinese, has come up with a solution. The firm has announced that it will be launching a company that will be responsible for building artificial intelligence chips. Baidu will reportedly be holding a fundraiser round in order to generate funds for the operation of the AI chip-making company.

The firm has announced that it has already gathered trust from several major firms that will be investing in the fundraiser round. According to the report released by CNBC on February 10, 2021, there are two major potential investors that will be investing in the round.

The sources have also revealed the names of the potentials that are Golden Gate Ventures (GGV) and IDG Capital that are categorized as the major venture capital firms.

Both of the above-mentioned firms are very popular among the cryptocurrency community for their contribution to the blockchain technology sector.

GGV is majorly known for providing support and raising millions of dollars in funds for cryptocurrency startups. On the other hand, IDG is known for backing major cryptocurrency exchanges such as KuCoin.

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