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They benefit from a strong captive market because Chinese firms cannot use Nvidia chips and are legally barred from processing data abroad, forcing them to rely
by xbmcuser 2mo ago
They benefit from a strong captive market because Chinese firms cannot use Nvidia chips and are legally barred from processing data abroad, forcing them to rely on domestic infrastructure.
- snake_doc 2mo agolol what no, AI competition is super competitive in China; bytedance has 50% of the inference market and mostly serves from outside of China https://www.bloomberg.com/news/articles/2026-06-17/microsoft-s-china-ai-business-grows-on-openai-model-sales https://www.bloomberg.com/news/articles/2026-06-17/microsoft... Bytedance which runs China’s most popular Doubao AI chatbot; is spending $70B in CapEx this year, most of it outside of China (Malaysia, Thailand, Brazil, etc; and they are allowed to lease NVIDIA chips). This is roughly 50% of Microsoft CapEx. https://www.tomshardware.com/pc-components/gpus/chinas-bytedance-to-access-36-000-blackwell-gpu-cluster-through-malaysia-cloud-operator-nvidia-confirms-no-objections-deal-is-in-line-with-us-export-controls https://www.tomshardware.com/pc-components/gpus/chinas-byted...