Chinese Firms Shift 46% of AI Chip Budgets to Domestic Suppliers, Ditching Nvidia
Updated
Updated · Bloomberg · Jul 14
Chinese Firms Shift 46% of AI Chip Budgets to Domestic Suppliers, Ditching Nvidia
3 articles · Updated · Bloomberg · Jul 14
Summary
Chinese companies plan to direct 46% of their AI accelerator budgets to domestic products over the next 12 months, up from 30% now, according to a Bloomberg Intelligence survey released Tuesday.
That shift points to a faster move away from Nvidia’s advanced accelerators as US-China tensions reshape how Chinese firms build AI infrastructure.
80% of executives surveyed said total infrastructure spending is already over budget this year, with AI projects cited as the main cost driver.
The reallocation also supports Beijing’s push to replace American technology with local alternatives across the AI supply chain.
Can Huawei's software break Nvidia's decade-long grip on the AI world?
Did US sanctions accidentally create a powerful new AI rival in China?
Will the world split into two separate, incompatible AI ecosystems?
From 30% to 46%: China’s Rapid AI Chip Budget Shift and the Global Race for Technological Sovereignty
Overview
China is rapidly transforming its AI chip strategy by shifting budgets toward domestic suppliers, with 46% of AI accelerator spending expected to go local by mid-2027, up from 30%. This pivot is driven by escalating US-China tech tensions and strict US export controls on advanced chips, which have caused Nvidia’s market share in China to collapse from 95% to nearly zero. As a result, domestic players like Huawei are rising quickly, projected to control 60% of the market by 2026. These changes mark a major reorientation of China’s AI chip industry and highlight its push for technological independence.