Chinese tech giants pivot to local market, moving away from NVIDIA chips

Major Chinese technology companies, including TikTok owner ByteDance, are sharply reducing their dependence on the US corporation NVIDIA for developing AI systems. As a result of Beijing's steps toward technological independence, a supply chain of local chips and accelerators is rapidly forming in the country. This is reported by Ixbt.com reports .

According to Reuters, ByteDance is currently in negotiations with the Shanghai-based company Iluvatar CoreX to purchase GPUs. These chips are designed to support the inference process of AI models. If the deal goes through, Iluvatar CoreX will become the third major local chip supplier for ByteDance, following giants like Huawei and Cambricon.

The rise of local manufacturers

It is not just ByteDance; other Chinese tech leaders are also focusing on the domestic market as restrictions on foreign technologies tighten. Specifically, the Kunlunxin chips developed by Baidu are now being successfully used in Tencent's infrastructure. This indicates that China's AI accelerator market is growing not only in quantity but also in quality.

According to statistics, Chinese chip manufacturers have already captured nearly 41% of the country's server accelerator market. This means that global leaders like NVIDIA are losing market share in one of their most important regions. US-imposed export restrictions have forced Chinese companies to seek alternatives and invest in their own developments.

Technological independence strategy

The Beijing government has long pursued a policy of reducing the risk of dependence on foreign suppliers in strategically important sectors. AI chips occupy a central place in this, as they are the foundation of the modern economy and security. Although the solutions offered by local companies may slightly lag behind NVIDIA products in performance, their availability and political security have become the key factors.

These processes are also significant for users and IT professionals in Uzbekistan. Such changes in the global chip market could affect the prices of gadgets and cloud services in the future, and may also lead to a wider spread of Chinese technologies in our region. While NVIDIA currently maintains its leadership, China's activity in this "chip war" is expected to shift the global balance.