In 2024, Chinese tech leaders Tencent and ByteDance emerged as major players in the AI hardware race by purchasing a significant number of NVIDIA’s advanced GPUs. Tencent, and ByteDance outpace Meta, and Google in NVIDIA AI GPU purchases, marking a significant shift in global AI hardware competition. Reports from Omdia and Financial Times revealed that both companies acquired approximately 230,000 Hopper GPUs each, including the specialized H20 variant, designed to meet US export restrictions for China. This puts their acquisitions ahead of major US firms like Google, Meta, and Amazon.
Microsoft outpaced all competitors, securing a record-breaking 485,000 Hopper GPUs in 2024. The company’s massive investment in AI hardware highlights its ambition to lead in AI innovation. This figure dwarfs the purchases made by Tencent, ByteDance, and other tech giants.
Despite strict US trade controls, Tencent and ByteDance managed to secure a substantial share of NVIDIA’s high-end GPUs. Their acquisitions underline China’s commitment to staying competitive in AI technology. Experts predict that this trend will continue into 2025 as these companies strengthen their AI capabilities.
NVIDIA’s Market Dominance
Reports reveal Tencent, ByteDance outpace Meta, Google in NVIDIA AI GPU purchases, securing approximately 230,000 Hopper GPUs each. NVIDIA retained its dominance in the AI server hardware market, accounting for 43% of total spending in 2024. Its Hopper GPUs remained the top choice for many, despite AMD gaining traction with significant orders from Microsoft and Meta. NVIDIA’s strong market position reflects the global demand for its cutting-edge AI chips.
While Tencent and ByteDance surged ahead in GPU acquisitions, US tech companies have increasingly shifted their focus to developing proprietary chips. Google deployed 1.5 million Tensor Processing Units (TPUs), while Meta expanded its use of MTIA chips. Amazon leaned on its Trainium and Inferentia processors. Microsoft, though heavily reliant on NVIDIA, began testing its Maia chips, with 200,000 units installed.
The Road Ahead for AI Innovation
The fierce competition between global tech giants signals that the AI race is far from over. Microsoft’s unparalleled investments in NVIDIA’s GPUs highlight its aggressive strategy to lead in AI. At the same time, Tencent and ByteDance’s strategic acquisitions emphasize their determination to remain competitive, even under geopolitical pressures.
As the industry advances into 2025, all eyes are on how these companies will navigate trade restrictions and drive the next wave of AI innovation.
Strategic Growth Amid Restrictions
Despite trade restrictions, Tencent, ByteDance outpace Meta, Google in NVIDIA AI GPU purchases. Tencent and ByteDance’s ability to acquire significant volumes of NVIDIA’s GPUs, despite US trade restrictions, demonstrates China’s strategic focus on AI. These purchases reflect the companies’ commitment to building robust AI ecosystems to remain competitive globally. However, their heavy reliance on NVIDIA underscores a vulnerability. Dependence on a single supplier for critical hardware leaves Chinese firms exposed to potential disruptions if export restrictions tighten further.
On the other hand, US firms like Microsoft, Google, and Amazon are proactively reducing external dependencies by developing in-house chips. This shift not only strengthens their technological autonomy but also positions them to control costs and optimize performance. Companies like Google and Meta are leveraging proprietary processors, such as Tensor Processing Units (TPUs) and MTIA chips, to meet their AI needs. These efforts show foresight in minimizing risks associated with external suppliers and geopolitical uncertainties.
NVIDIA’s dominance in the AI server hardware market, with a 43% share of total spending in 2024, highlights its unparalleled position as the preferred choice for cutting-edge AI solutions.
Also Read: Godfather of AI Throws Support Behind Elon Musk’s Lawsuit Against OpenAI, Sparks Debate.
