Chinese Tech Giants Shift AI Development to Domestic Chips Amid U.S. Export Restrictions

China’s leading tech companies—Alibaba, Tencent, and Baidu—are accelerating efforts to reduce reliance on Nvidia’s AI chips following tightened U.S. export controls. The TRUMP administration’s recent restrictions have effectively blocked Nvidia’s modified H20 chips, leaving Chinese firms with dwindling inventories and an uncertain supply chain.

Baidu’s AI cloud division head, Shen Dou, confirmed the pivot to domestic alternatives, emphasizing locally developed chips and software Stacks as foundational for future AI ecosystems. Current Nvidia stockpiles may only sustain operations until early 2026, forcing rapid adoption of homegrown solutions.

The MOVE underscores broader decoupling trends in tech supply chains, with Chinese enterprises prioritizing self-sufficiency amid geopolitical tensions. Market observers note potential long-term impacts on global semiconductor demand and AI competitiveness.