💰 Nvidia Is Losing Ground in China to Local Chipmakers

In 2025, Chinese data centers purchased approximately 4 million AI chips, including 2.2 million from Nvidia and 1.65 million from domestic companies.

Nvidia still dominates the global GPU market, but it's starting to lose one of its most important markets: China. Over the past five years, its share there has dropped from 95% to 55%.

✖️ The shift began in 2022, when the U.S. government restricted Nvidia from selling to China its most advanced chips, including the A100, H100, and H200. In response, the Chinese government launched incentives for building AI data centers, requiring companies to use locally made chips to qualify for state support.

💻 The biggest beneficiary so far has been Huawei, which shipped 812,000 chips last year, capturing about 20% of the market. Other Chinese players developing data center processors include T-Head (Alibaba), Kunlunxin (Baidu), and Cambricon.

Could Huawei challenge Nvidia on the global stage?

❤️ — Yes, it's possible
🔥 — Unlikely