Chinese Companies Shift from Nvidia to Domestic AI Chips Amid U.S. Tensions

A Bloomberg Intelligence survey reveals Chinese companies are shifting from Nvidia's advanced AI accelerators to domestic suppliers amid U.S. tensions. Executives plan to allocate 46% of their AI chip budget to local products in the next year, up from 30% today. This move supports Beijing's goal of tech self-sufficiency, as 80% of firms report budget overruns due to high AI project costs.

Shift to Domestic AI Chips

• ▪A Bloomberg Intelligence survey shows Chinese companies are shifting from Nvidia Corp.'s advanced accelerators to domestic silicon
• ▪Chinese executives plan to allocate 46% of their AI accelerator budget to domestic products over the next 12 months
• ▪The current allocation of AI accelerator budgets by Chinese companies to domestic products is 30%

U.S.-China Technology Tensions

• ▪Tensions with the U.S. are reshaping the AI infrastructure buildout in China
• ▪The shift to domestic chips supports Beijing’s ambitions to substitute American technology

AI Infrastructure Budget Pressures

• ▪The budget overruns are mostly attributed to the high cost of AI-related projects
• ▪80% of Chinese executives reported their total infrastructure spending is over-budget in 2026