Nvidia's China presence hits zero, says CEO Jensen Huang, and companies are already working around it — Alibaba reduces reliance on H20 as U.S. and China division deepens

Alibaba Cloud has introduced a GPU pooling system called Aegaeon that significantly reduces the number of Nvidia accelerators needed for large-scale inference workloads. This innovation comes at a time when Nvidia has lost its entire market share in China due to U.S. export controls. Chinese companies are adapting to the absence of Nvidia by developing software solutions that optimize GPU usage, like Alibaba's Aegaeon system. This shift signifies a move towards software-led reshaping of the AI stack in China, where domestic chipmakers are exploring alternatives to Nvidia for AI processing. The rise of software-based solutions like Aegaeon demonstrates a shift towards architectural flexibility and cost efficiency in the Chinese tech industry.