No Funds, No Power: AI Research Crisis in Korean University

It is reported that due to a lack of the latest AI chips, coupled with insufficient power supply, generative AI research at South Korean universities is unable to operate normally.

Despite government support projects at Seoul National University and the Korea Advanced Institute of Science and Technology, they have received relatively small budgets, leaving them without sufficient funds to purchase Nvidia chips.

Seoul National University
⬆️ Seoul National University (Image Credit: @ScholarshipDB from Youtube)

According to participating professors, building a model like OpenAI’s Sora requires hundreds of GPUs, which are difficult to obtain, forcing researchers to rely on older gaming GPUs.

Nvidia’s H100 chip costs around $40,000, while the A100 costs about $10,000. Using a system with eight Nvidia A100 GPUs, creating a Sora-like model would take 148 years.

NVIDIA Blackwell
⬆️ NVIDIA Blackwell (Image Credit: NVIDIA)

Additionally, the power issue is crucial. Operating multiple GPUs requires a lot of electricity, which the universities cannot adequately supply.

Even if government budgets are approved, equipment purchases require approval and typically take more than three months. Research institutions reveal that general AI research needs at least eight GPUs, and servers cost more than $400,000 to $500,000.

AI-designed chips
⬆️ AI-designed chips

Currently, in South Korea, Naver’s data center has 2,000-3,000 AI chips, followed by Samsung Electronics. However, this capacity is less than one-tenth of that of large American companies.

More importantly, even with money, it is challenging to buy AI chips, as companies that buy in bulk have priority, leaving smaller buyers out.

A100-FP16-vs-H100-FP8
⬆️ A100-FP16-vs-H100-FP8 (Image Credit: NVIDIA)

American universities obtain large GPU supplies through investments or donations. For example, the University of Florida built an AI supercomputer in 2020 with 1,120 A100 chips. The University of Florida is the alma mater of Nvidia co-founder Chris Malachowsky.

The University of Texas at Austin also has a large AI center, equipped with 600 H100 chips.

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