Chinese AI chip manufacturers have made a significant leap, capturing nearly 41% of their domestic market for AI accelerator servers in the past year. This surge marks a substantial challenge to the previously unassailable position of U.S. chip giant Nvidia in one of its key overseas markets.
The shift reflects China’s strategic pivot towards reducing reliance on foreign technology, particularly in critical sectors like artificial intelligence. Escalating U.S. export controls have intensified this drive, compelling Chinese entities to seek and adopt domestic alternatives.
According to data from a report by IDC, the total sales of AI accelerator cards from Nvidia, AMD, and Chinese chipmakers reached approximately 4 million units in China during 2025. This information was shared with Reuters, highlighting the evolving landscape of the Chinese AI hardware market.
Nvidia’s Grip Loosens as Domestic Players Gain Ground
While Nvidia maintained its leadership position with sales of around 2.2 million cards, accounting for a 55% market share, this represents a notable decline from its previous dominance. The U.S. company has seen its once-unrivaled control in China’s AI market diminish.
AMD, another major U.S. player, held a more modest presence, with sales of approximately 160,000 cards and a 4% market share. This underscores the growing momentum of Chinese chip producers.
Chinese Manufacturers Achieve Landmark Market Share
Collectively, Chinese suppliers sold 1.65 million cards, securing a significant 41% of the total market. This achievement is a direct result of their aggressive efforts to fill the void created by tightened U.S. export restrictions.
Huawei Technologies emerged as the frontrunner among Chinese vendors, selling an estimated 812,000 AI chips, which is roughly half of all sales from domestic brands. This strong performance positions Huawei as a key player in China’s technological self-reliance initiatives.
Key Chinese Players and Government Support Fuel Growth
The Alibaba chip design unit, T-Head, secured the second position among Chinese suppliers, with sales approximating 265,000 units. Following closely were Baidu’s Kunlunxin and Cambricon, each selling around 116,000 cards and ranking third among domestic manufacturers.
Other notable contributors include Hygon, and startups MetaX and Iluvatar CoreX, which accounted for 5%, 4%, and 3% of the total Chinese supplier sales, respectively. Their combined efforts are instrumental in bolstering the domestic AI chip industry.
The Chinese government has actively supported this domestic surge. In 2025, a new campaign was launched to incentivize investments in AI infrastructure. Local governments have also accelerated the development of intelligent computing centers across provinces, often with implicit directives to prioritize Chinese-made components.
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