Chinese GPU and AI chip makers captured roughly 41% of China's AI accelerator server market in 2025, according to IDC data reviewed by Reuters - a milestone that signals how aggressively domestic vendors are filling the gap left by successive waves of U.S. export controls.

Total AI accelerator card shipments in China reached approximately 4 million units last year. Nvidia retained the top spot with around 2.2 million cards and a 55% share, but that figure represents a significant retreat from its previously dominant position. AMD held a modest 4% share with roughly 160,000 cards shipped.

Huawei Leads the Domestic Pack

Among Chinese vendors, Huawei emerged as the clear leader, shipping approximately 812,000 AI chips - nearly half of all domestically branded shipments. Alibaba's chip design unit T-Head claimed second place with around 265,000 cards, while Baidu's Kunlunxin and Cambricon tied for third at roughly 116,000 each.

Smaller players including Hygon, MetaX, and Iluvatar CoreX accounted for 5%, 4%, and 3% of Chinese vendor shipments respectively, indicating a broad-based push across the domestic semiconductor ecosystem.

Government Policy Accelerates Shift

The shift is not purely market-driven. In 2025, China's central government launched a new wave of AI infrastructure spending, with local governments accelerating intelligent computing centers across provinces. Many of these projects carried implicit directives to prioritize Chinese-made chips.

The trend raises questions for Nvidia's China revenue outlook, even as the company recently received approval to sell H200 chips to Chinese customers. Whether that concession can reverse the momentum remains an open question heading into 2026.