Beijing’s Tech Push Gains Momentum
China’s tech giants Alibaba Group and Baidu Inc have begun deploying their own internally designed chips to train artificial intelligence (AI) models, marking a strategic shift away from heavy reliance on Nvidia processors, according to a report by The Information.
Alibaba and Baidu’s In-House Efforts
Alibaba: Has used its self-designed chips since early 2025 to train smaller-scale AI models.
Baidu: Is testing its Kunlun P800 chip to train updated versions of its flagship Ernie AI model.
Both companies are still deploying Nvidia’s hardware for their most advanced AI projects, but the gradual shift underscores the effort to reduce vulnerability to US export restrictions.
This development signals:
Rising self-sufficiency: Chinese firms are strengthening their chip arsenals.
Strategic hedging: Balancing use of domestic chips while retaining Nvidia for high-end needs.
Geopolitical resilience: Aligning with Beijing’s call to reduce dependence on foreign suppliers.
⚡ Bottom Line: Alibaba and Baidu’s shift highlights how China’s AI champions are adapting to US sanctions by embedding more local technology into their AI infrastructure — a trend that could reshape the competitive landscape in global AI development.
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