China’s GPU cloud consolidates around Baidu and Huawei as domestic AI chips scale up — export controls leave gap open for homegrown solutions

China's GPU cloud market is consolidating around Baidu and Huawei, with both companies designing their own AI accelerators and software frameworks, reflecting a shift towards vertical integration. U.S. export controls limiting access to Nvidia and AMD accelerators have led to a focus on domestically designed AI chips in China. While domestic accelerators have narrowed the performance gap with Nvidia's offerings, efficiency and memory subsystems still lag behind. A growing ecosystem of AI chip designers in China is moving into public markets to fund next-gen domestic silicon, reshaping competition in the market. The Chinese GPU cloud market is evolving into a system focused on integration depth, domestic supply security, and alignment with Beijing's policy goals, challenging Nvidia's dominance in the region.