China’s biggest technology companies have begun the long and difficult process of switching their development of artificial intelligence to homegrown chips, as they contend with a dwindling stockpile of Nvidia processors and tightening US export controls. Alibaba, Tencent and Baidu are among those starting to test alternative semiconductors to meet surging AI-related internal demand and client needs, according to industry executives. They have been forced to step up contingency planning as growing US-China trade tensions led Donald Trump’s administration last month to clamp down on sales of their preferred chip: Nvidia’s H20, a watered-down product tailored to comply with Joe Biden-era curbs. The tightening of controls added urgency to Chinese tech groups’ moves, with their existing Nvidia stockpile only able to sustain AI development until around early next year, according to insiders with knowledge of the matter. New chip orders typically take three to six months to be shipped, and it remains unclear when and whether Nvidia will be able to offer a new processor for China that is both compliant with Trump’s tougher export rules and competitive enough against local rivals.

Full report : Sources say Alibaba, Tencent, Baidu, and other Chinese companies are testing domestic alternatives as they deal with a dwindling stockpile of Nvidia processors.