Vietnamese technology powerhouse VNG has partnered with Nvidia to enhance its cloud computing capabilities, aligning with the US chip manufacturer’s strategic push to strengthen its presence across Asia, according to a report by Nikkei Asia on May 15.
This collaboration was revealed shortly after Nvidia CEO Jensen Huang’s visit to Asia, aimed at bolstering regional connections.
A representative from VNG disclosed to Nikkei Asia that their data centre in Thailand is now equipped with 1,000 Nvidia graphics processing units.
The setup is designed to support AI storage and various software services for Nvidia’s product users.
VNG, initially recognised for its successful chat application Zalo, which has surpassed Facebook’s popularity in Vietnam, has maintained an operational base in Bangkok for several years. This new cloud partnership prioritises VNG’s access to Nvidia’s chips and software technologies, positioning it advantageously to broaden its customer reach.
Furthermore, Nvidia is also collaborating with FPT, a leading Vietnamese tech firm, on a $200 million AI factory. This indicates Nvidia’s commitment to sustaining its Vietnamese operations as the nation develops its semiconductor sector.
CEO Jensen Huang’s engagements in December 2023 included visits to Malaysia, Singapore, and Vietnam, where he met with corporate leaders from companies like FPT and VNG.
Despite U.S. export restrictions affecting only a fraction of Nvidia’s most advanced chips, these meetings involved strategic discussions, including those with Vietnamese Prime Minister Pham Minh Chinh in both California and Hanoi. Their conversations focused on fostering investment and nurturing the local tech talent pool.
Previously known primarily as an online gaming publisher, VNG has diversified into data centres, payment solutions, AI, and the messaging platform Zalo. VNG reported a 2023 operational loss of around $79 million and has deferred its planned Nasdaq listing.
On Nvidia’s front, the company’s graphics cards have transitioned from gaming essentials to key tools for cryptocurrency miners and AI developers.
As reported by Morningstar, the AI surge has significantly boosted Nvidia’s stock performance, making it one of the top gainers in 2023, just behind cryptocurrency exchange Coinbase.
